Rajesh Power Services Wins ₹362.82 Crore PGVCL Turnkey Contract for Underground Cable Network in Jamnagar

What Happened ?

Rajesh Power Services Limited informed the stock exchanges that it has received a turnkey contract from Paschim Gujarat Vij Company Limited (PGVCL).

The project involves the conversion of the existing 11 kV High Tension (HT) lines, Low Tension (LT) lines and consumer service lines into an underground cable network with a Ring Main System for the Jamnagar City-2 Division under the Jamnagar Circle.

The company stated that the order was received in the normal course of business and will be executed over a period of 24 months. 

key details

Order Highlights:

• Award received from Paschim Gujarat Vij Company Limited (PGVCL).
• Total contract value of ₹362.82 crore, inclusive of taxes.
• Project to be executed on a turnkey basis.
• Scope includes:
  • Conversion of existing 11 kV HT lines.
  • Conversion of LT line network.
  • Conversion of consumer service lines.
  • Development of an underground cable network.
  • Installation of a Ring Main System.
• Project location: Jamnagar City-2 Division, Jamnagar Circle, Gujarat.
• Execution timeline: 24 months.

Why It Matters:

• The contract enhances Rajesh Power Services’ presence in the power distribution infrastructure sector and supports the ongoing modernization of electricity distribution networks through underground cabling.
• Such projects typically improve network reliability, reduce technical losses and strengthen urban power infrastructure while providing medium-term revenue visibility for the company. 

Note:

• The contract was awarded by a domestic entity.
• The order was received in the normal course of business.
• No promoter, promoter group or group company has any interest in PGVCL.
• The contract does not constitute a related-party transaction.

Risk Analysis

Summary:

• While the order strengthens revenue visibility, execution remains subject to project implementation, regulatory approvals and operational challenges typically associated with utility infrastructure projects.

Key Risks:

• Delays in project execution.
• Cost escalation during the execution period.
• Site access and utility coordination challenges.
• Working capital requirements for project execution.
• Revenue recognition depends on project milestones and timely completion.

Worst Case:

• Execution delays or cost overruns could affect project profitability and postpone revenue recognition over the contract period.

Risk Level: Medium

Company Commentary

• Rajesh Power Services has secured the order from PGVCL in the normal course of business.
• The project involves underground conversion of HT and LT distribution networks with Ring Main System implementation.
• The company confirmed that the contract is not a related-party transaction and that no promoter group interest exists in the awarding entity.