Power Mech Projects wins Rs 386.87 crore Rabigh 2 contract

Power Mech Projects Limited said on November 6, 2026, that its Saudi subsidiary won Rs 386.87 crore of confirmed erection work for the Rabigh 2 IPP Expansion Project, excluding taxes, with Rs 105.13 crore of optional scope that would take the disclosed aggregate value to approximately Rs 492 crore.

What work did Power Mech Projects win in Saudi Arabia?

Power Mech Projects won an erection contract through its subsidiary, Power Mech Arabia Contracting Company, for the Rabigh 2 IPP Expansion Project in Saudi Arabia. The main scope covers installation of three Heat Recovery Steam Generators, one steam turbine for Block 10, and Balance of Plant Combined Cycle piping for Block 20 and common project areas.

The filing identifies the contract as international and describes its nature as erection. Power Mech Projects said the customer is a joint venture between the Saudi branches of Elsewedy Electric Power Systems Projects and Sinohydro Corporation Limited.

The main package separates the Block 10 steam turbine from the confirmed piping scope, which covers Block 20 and common areas. Installation of Balance of Plant Combined Cycle piping for Block 10 is separately designated as optional work valued at Rs 105.13 crore excluding taxes.

Power Mech Projects did not disclose piping quantities, equipment-supply responsibilities, commissioning obligations or payment milestones in its November 6, 2026 announcement. The stated role is installation of the three generators, the Block 10 turbine and the specified piping systems.

How much is the Rabigh 2 contract worth?

Power Mech Projects disclosed Rs 386.87 crore of main work excluding taxes, while the optional Block 10 piping scope is valued at Rs 105.13 crore excluding taxes. The company stated an aggregate potential consideration of approximately Rs 492 crore, which includes both packages.

The confirmed main-work value is Rs 386.87 crore, while the Rs 105.13 crore component is expressly labelled optional. The approximately Rs 492 crore aggregate is therefore not solely confirmed work, because it assumes inclusion of the optional Block 10 piping package.

Power Mech Projects used an exchange rate of Rs 94.4 per United States dollar, based on the Reserve Bank of India website at the close of November 5, 2026, for the reported rupee equivalents. All three disclosed values, including the approximately Rs 492 crore aggregate, exclude taxes.

When will Power Mech Projects execute the contract?

Power Mech Projects said the contract period is 20 months effective from January 1, 2027. The stated period begins nearly two months after the November 6, 2026 disclosure and applies to the Rabigh 2 IPP Expansion Project contract.

Based on the announced effective date, the 20-month term runs from January 1, 2027. The filing does not provide interim completion dates for the three Heat Recovery Steam Generators, the Block 10 steam turbine, or the piping work for Block 20 and common areas.

The announcement also does not state whether exercising the Rs 105.13 crore optional Block 10 piping scope would change the 20-month timetable. No mobilisation date, workforce plan, site milestone or separate completion schedule was disclosed for either the Rs 386.87 crore main package or the optional package.

Who awarded the Rabigh 2 contract to Power Mech Projects?

Power Mech Projects identified the awarding entity as a joint venture of the Saudi branch of Elsewedy Electric Power Systems Projects and the Saudi branch of Sinohydro Corporation Limited. The company classified the customer as an international entity in its November 6, 2026 filing.

Power Mech Arabia Contracting Company, the contracting subsidiary, is incorporated under the laws of the Kingdom of Saudi Arabia, according to the filing. Elsewedy’s branch is described as a branch of a foreign company registered under Saudi Arabian law, while Sinohydro’s branch is described as legally registered in Riyadh City.

Power Mech Projects stated that its promoters, promoter group and group companies have no interest in the awarding entity. It also said the Rs 386.87 crore main-work contract and the Rs 105.13 crore optional scope do not fall within related-party transactions.

The filing does not disclose the respective roles or ownership shares of Elsewedy Electric Power Systems Projects and Sinohydro Corporation Limited in their joint venture. It also provides no allocation between the two branches for the approximately Rs 492 crore aggregate potential consideration.

What does the optional Rabigh 2 scope mean for value?

Power Mech Projects describes the Rs 105.13 crore Block 10 piping package as optional work rather than confirmed main work. Its main Rs 386.87 crore package already includes installation of the Block 10 steam turbine, but not the Block 10 Balance of Plant Combined Cycle piping.

The scope split creates two disclosed values: Rs 386.87 crore for confirmed work and approximately Rs 492 crore when the optional package is added. The optional scope is narrower in the filing’s description, covering Block 10 piping, whereas the main package includes three Heat Recovery Steam Generators, a turbine and piping for Block 20 and common areas.

Power Mech Projects did not disclose an exercise date, approval process, customer trigger or other condition for activating the Rs 105.13 crore optional work. The November 6, 2026 announcement gives the optional package a value and installation description, but does not say it has been exercised.

Conclusion

The filing records a Saudi international erection contract with Rs 386.87 crore of confirmed work for Power Mech Projects’ subsidiary at the Rabigh 2 IPP Expansion Project. The confirmed package combines installation of three Heat Recovery Steam Generators, one Block 10 steam turbine and specified piping, while the approximately Rs 492 crore potential total depends on the separate Rs 105.13 crore optional package.

The next disclosed event is the January 1, 2027 effective date, from which the 20-month contract period begins. The unresolved matter is whether the Block 10 piping option will be exercised, as Power Mech Projects has not disclosed a trigger, deadline or schedule change associated with that scope.