Power Mech secures Rs 1.65 billion contract for Koderma power expansion

Power Mech Projects Limited has secured a Rs 1.65 billion contract from Bharat Heavy Electricals Limited (BHEL) for the 2×800 MW Koderma Thermal Power Expansion Project. 

The contract covers main supply, design and engineering, mandatory spares, and civil works, including erection and commissioning. The work is expected to be completed within 30 months.

Koderma Thermal Power Station, located in Hirodih, Chandwara, Jharkhand, has an existing capacity of 1,000 MW. Unit 1 (500 MW) was commissioned in 2011, followed by Unit 2 (500 MW) in 2013. Damodar Valley Corporation (DVC) is undertaking the brownfield expansion under Unit III and IV. In 2022, DVC announced a growth plan to add new coal-based capacity, including the 2×800 MW expansion at Koderma.

In mid-2024, BHEL secured a Rs 133 billion EPC contract for the project. By September, DVC achieved financial closure, securing Rs 100.5 billion in funding from the State Bank of India (SBI). The Ministry of Environment, Forest and Climate Change (MoEFCC) granted environmental clearance later in the year. In November, DVC signed a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for 200 MW from the project, which was approved by the Ministry of Power (MoP).