Power Mech wins Rabigh 2 contract worth up to Rs 492 crore

Power Mech Projects Limited has secured a Saudi Arabia erection contract for the Rabigh 2 IPP Expansion Project worth up to about Rs 492 crore excluding taxes, including Rs 386.87 crore of main work and Rs 105.13 crore of optional work. The 20-month contract period becomes effective on January 1, 2027.

What has Power Mech won at Rabigh 2?

Power Mech has entered into an international erection contract through its Saudi subsidiary, Power Mech Arabia Contracting Company, for the Rabigh 2 IPP Expansion Project. The November 6, 2026 filing identifies the awarding party as a joint venture between the Saudi branches of ELSEWEDY ELECTRIC POWER SYSTEMS PROJECTS and SINOHYDRO CORPORATION LIMITED.

The disclosed assignment is an erection contract rather than a supply contract. Its 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 facilities.

Power Mech’s contract runs for 20 months effective from January 1, 2027. The stated effective date places the start of the contractual period after the November 6, 2026 announcement, while the filing does not provide a specific calendar completion date.

How much is the Rabigh 2 contract worth?

Power Mech disclosed Rs 386.87 crore excluding taxes for the main work, with a further Rs 105.13 crore excluding taxes attached to optional work. Together, the announced contract has an aggregate potential value of about Rs 492 crore excluding taxes, but the full amount includes the optional scope.

The main work is the larger disclosed component at Rs 386.87 crore, while the optional element adds Rs 105.13 crore to the potential total. The optional work is the installation of Balance of Plant Combined Cycle Piping for Block 10, whereas the main piping package covers Block 20 and common facilities.

Power Mech calculated the rupee equivalents at Rs 94.4 per US dollar, using the Reserve Bank of India’s official website at the close of November 5, 2026. The company described the Rs 492 crore aggregate as an approximate rupee equivalent, rather than a separately stated fixed rupee billing amount.

What work will Power Mech perform at Rabigh 2?

Power Mech’s principal assignment is to install three Heat Recovery Steam Generators, one steam turbine for Block 10, and specified combined-cycle piping at the Rabigh 2 IPP Expansion Project. These equipment and piping packages form the disclosed main scope for the 20-month period beginning January 1, 2027.

The three Heat Recovery Steam Generators are the largest numbered equipment package identified in the announcement. The single steam turbine is allocated to Block 10, while the main combined-cycle piping installation is assigned to Block 20 and common facilities.

The optional scope is installation of Balance of Plant Combined Cycle Piping for Block 10. This differs from the main piping scope for Block 20 and common facilities, making the Block 10 piping package additional to the stated main-work configuration.

The filing does not allocate the Rs 105.13 crore optional consideration among individual piping activities or provide a physical quantity for the piping. It also does not state that the optional scope has been activated, leaving Rs 386.87 crore as the disclosed main-work value and Rs 492 crore as the total including the option.

Who awarded Power Mech the Saudi contract?

Power Mech was awarded the contract by a joint venture of the Saudi branches of ELSEWEDY ELECTRIC POWER SYSTEMS PROJECTS and SINOHYDRO CORPORATION LIMITED. The disclosure classifies both the counterparty and the erection contract as international, while Power Mech Arabia Contracting Company is incorporated under the laws of Saudi Arabia.

The contract counterparty is described as a joint venture, rather than as the Rabigh project owner. ELSEWEDY ELECTRIC POWER SYSTEMS PROJECTS is identified as a branch of a foreign company under Saudi law, and SINOHYDRO CORPORATION LIMITED is identified as a branch legally registered in Riyadh City under Saudi law.

Power Mech stated that neither its promoters, promoter group nor group companies have any interest in the entity awarding the contract. It also said the Rs 492 crore potential arrangement does not fall within related-party transactions.

When will Power Mech execute the Rabigh 2 work?

Power Mech is to execute the Rabigh 2 contract over 20 months effective from January 1, 2027. The filing distinguishes this start date from the November 6, 2026 disclosure date and does not specify interim construction milestones.

The announced timing establishes the award before the contractual period begins in 2027. Power Mech did not provide a revenue-recognition schedule for either the Rs 386.87 crore main scope or the Rs 105.13 crore optional scope.

An unresolved point is whether the optional Block 10 piping scope will be taken up during the 20-month period. The announcement provides no condition, deadline for exercise, or change in duration associated with that Rs 105.13 crore component.

Conclusion

Power Mech has disclosed an international Saudi erection order with Rs 386.87 crore of main work and potential consideration of about Rs 492 crore when the Rs 105.13 crore optional scope is included. The package covers three Heat Recovery Steam Generators, a Block 10 steam turbine and combined-cycle piping installations for specified blocks and common facilities.

The next disclosed milestone is the contract’s January 1, 2027 effective date, followed by the 20-month execution period. Any subsequent disclosure on the Block 10 optional piping scope would determine whether the contract remains at the main-work value or reaches the stated aggregate potential consideration.