Power Mech Projects bags ₹971.98 crore township contract from TGGENCO
Team Finance Saathi
13/May/2025

What's covered under the Article:
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Power Mech Projects won a ₹971.98 crore order from Telangana Power Generation Corp for township construction.
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The 30-month contract includes designing and building residential and infrastructural facilities.
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The project is located at Yadadri Thermal Power Station in Nalgonda district of Telangana.
Power Mech Projects Limited, a leading infrastructure and construction company in India, has received a prestigious domestic order worth ₹971.98 crore (excluding GST) from Telangana Power Generation Corporation Limited (TGGENCO). This large-scale contract highlights the company’s robust capabilities in executing integrated infrastructure development for industrial and residential purposes.
Project Overview and Scope
The awarded project pertains to the construction of a fully integrated township to support the Yadadri Thermal Power Station (YTPS) located in Veerlapalem Village, Dameracherla Mandal, Nalgonda District, Telangana.
The scope of work includes soil investigation, engineering, design, and construction of a wide array of infrastructure components. These facilities are intended to accommodate employees and support staff of the thermal power station and promote community development in the surrounding area.
Key Features of the Project
The township development contract includes:
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Independent residential quarters (A & B Type)
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Multistoried residential quarters (D, E & F Type) with stilt + 10 floors
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Hospital building
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School building
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Clubhouse and commercial complexes
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Indoor stadium and multipurpose function hall
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Sports complex and security rooms
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Maintenance offices and site levelling
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Roads, drains, and a bridge over Tungapadu vagu
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Underground potable water tanks and Over Head Service Reservoirs (OHSR)
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Septic tanks and Sewage Treatment Plants (STP)
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Avenue plantation and rainwater harvesting pits
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Street lighting and sub-station development
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Main gates and internal compound walls
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BT (Bituminous) approach road to the township
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Parking sheds and associated civil works
This comprehensive construction package aims to deliver a self-sustained and modern township with a well-planned infrastructure backbone for residential and administrative needs.
Execution Timeline and Location
The project is to be completed within 30 months from the date of taking over the site. The location at Yadadri Thermal Power Station, an important facility for Telangana’s energy requirements, adds strategic relevance to the development. The thermal station is a part of Telangana’s focused efforts to increase power generation capacity to meet industrial and residential energy demands.
TGGENCO: The Awarding Entity
Telangana Power Generation Corporation Limited (TGGENCO), a government-owned utility and a major power producer in the state, is the awarding body for this contract. TGGENCO plays a pivotal role in developing and maintaining power generation infrastructure in Telangana. It has chosen Power Mech Projects as its trusted execution partner for this complex township project, reflecting confidence in the company's technical expertise and track record.
No Related Party Involvement
As per the company’s disclosure:
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The order is from a domestic entity, with no international involvement.
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No promoter, promoter group, or group company of Power Mech Projects has any interest in TGGENCO.
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The transaction does not fall under related party transactions, and it is not subject to arm’s length pricing.
Reinforcing Power Mech's Market Leadership
This new contract further reinforces Power Mech Projects' leadership in executing end-to-end engineering, procurement, and construction (EPC) services across India. With its capability to design, manage, and build complex infrastructure—from residential spaces to industrial plants and civic utilities—the company is fast emerging as a preferred partner for large public sector entities and state governments.
The ₹971.98 crore township project is expected to contribute significantly to Power Mech’s revenue in the coming quarters. It also showcases the company's versatility in delivering urban infrastructure solutions beyond its traditional domain of power and industrial sector services.
Strategic Importance for Telangana
The development of this township is strategically aligned with Telangana’s infrastructure and power expansion plans. The state government has placed a strong emphasis on modernising its power sector and supporting it with high-quality civic infrastructure. By awarding this contract to Power Mech Projects, TGGENCO aims to improve living conditions for workers and staff near the thermal plant and enhance operational efficiency through proximity and better amenities.
Conclusion
This ₹971.98 crore order marks a significant milestone for Power Mech Projects Limited, validating its capabilities in large-scale, high-value civil construction and infrastructure. The integrated township at Yadadri Thermal Power Station will stand as a modern residential and civic complex built to support one of the largest power facilities in the state. With a structured execution timeline of 30 months, the project will not only contribute to the company’s growth trajectory but also support Telangana’s vision for sustainable urban expansion around its critical power infrastructure.
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