KNR Constructions Limited has informed the Exchange about Awarding of order(s)/contract(s)
KNRCON · price
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Awaiting price reaction for this filing.
KNR Constructions has received a Letter of Acceptance for a short-term contract to develop and operate the Banhardih Coal Mining Block in Jharkhand. The order, awarded by Patratu Vidyut Utpadan Nigam Ltd (a subsidiary of NTPC in JV with JBVNL), is worth Rs 4,800.57 crore (excluding GST). KNRCL will execute it through a joint venture (KNRCL: 74%, Harsha Constructions: 26%), translating to roughly Rs 3,553 crore for KNRCL's share. The project covers 34.50 million tonnes of mine reserve, with a 360-day initial development stage followed by 5 years of operation. The contract is a major public sector undertaking (PSU) award from an NTPC group entity.
This is a very large order, likely exceeding 5% of KNRCL's annual revenue, and provides strong multi-year revenue visibility from a creditworthy PSU client. Positive for the stock, as it materially expands the order book and diversifies the company into coal mining operations.