Power Mech Projects Ltd., a Hyderabad-based engineering and construction firm, has bagged a major township development contract worth ₹971.98 crore. This project has been awarded by Telangana Power Generation Corporation Ltd (TSGENCO) and will be located at the Yadadri Thermal Power Station in Nalgonda district of Telangana.

This development marks a significant milestone for Power Mech Projects, reinforcing its position as a key player in the infrastructure and civil construction segment, particularly in high-value government-led township and power station-associated developments.

Scope and Scale of the Project

The township project is comprehensive in scale and diversity. It involves a combination of engineering, architecture, civil construction, and infrastructure development works. Key elements of the project include:

• Soil investigation, design, and engineering

• Construction of residential quarters, including:

  • A & B type independent quarters

  • Multistoried residential quarters (Stilt + 10 floors) in D, E & F type categories

• Institutional and community infrastructure, including:

  • Hospital building

  • School building

  • Clubhouse

  • Commercial complexes

  • Indoor stadium

  • Multipurpose function hall

  • Sports complex

• Essential amenities and utility systems, such as:

  • Firefighting system

  • Security rooms & maintenance offices

  • Site levelling and grading

  • Roads, drains, parking sheds

  • Underground potable water tanks, septic tanks, STPs, and OHSRs

  • Avenue plantation and rainwater harvesting pits

This integrated development also includes:

• BT approach road to the township

• Construction of a bridge over Tungapadu Vagu

• Main gate and internal compound walls

• Street lighting and a substation

This all-encompassing plan aims to create a self-sufficient residential ecosystem catering to the personnel and workers of Yadadri Thermal Power Station and possibly their families.

Project Location: Yadadri Thermal Power Station, Nalgonda

The township will be situated in close proximity to the Yadadri Thermal Power Station, a major state-run energy initiative in Nalgonda district. The location is strategic, providing housing and facilities near the operational plant, and aligning with government efforts to enhance employee welfare, improve residential infrastructure, and boost overall productivity.

The Yadadri TPP is one of Telangana’s flagship thermal power initiatives, and supporting infrastructure like this township is a step forward in building integrated power generation environments.

Power Mech’s Consistent Order Book Growth

This is not the first major deal for Power Mech in 2025. The company has been steadily expanding its order book and geographical footprint. Recent major contracts include:

• ₹425 crore project from Mirzapur Thermal Energy in Uttar Pradesh, secured in April 2025.

• ₹972.135 crore project from the National Highways Authority of India (NHAI) for constructing a 4-lane bypass in Jharkhand under a hybrid annuity model.

These deals underscore the company’s diversified capabilities across sectors, including thermal power infrastructure, civil construction, roadways, and now township development.

Stock Market Reaction

Following the announcement, shares of Power Mech Projects rose by 2.4% to ₹2,790 on Tuesday, May 13. This indicates positive investor sentiment around the new contract and its potential to boost the company’s revenues and future earnings.

The stock has also shown a similar 2.4% gain over the past month and year-to-date, highlighting the steadiness in its growth trajectory and the confidence that long-term investors seem to have in the company.

Strategic Importance of the Contract

This township project is strategically important for multiple reasons:

• Supports employee welfare at the power station, thus ensuring smoother operations.

• Elevates the company’s standing in the government project space, especially with TSGENCO, one of the key power utility bodies in southern India.

• Strengthens Power Mech’s EPC credentials in complex, multi-functional township developments, adding diversity to its traditional industrial and thermal project portfolio.

What This Means for the Construction Sector

The ₹971.98 crore contract for Power Mech reflects increased activity in public infrastructure spending, especially in energy sector-supportive developments. As India continues to expand its thermal and renewable power capacities, such integrated infrastructure projects are likely to rise.

Townships attached to industrial hubs are becoming increasingly common, as governments and companies look to offer better quality of life to workers and their families. For construction companies like Power Mech, this trend provides a steady pipeline of opportunities beyond just factories and powerhouses.

Conclusion

Power Mech Projects’ latest township project win is a big boost for the company’s reputation and revenue potential. With a diverse and high-value scope of work, this project showcases the company’s ability to deliver integrated civil and infrastructural solutions at scale.

As the construction progresses at Yadadri Thermal Power Station, the market will be watching Power Mech’s execution capabilities closely. With its robust order book and strategic government contracts, the company seems well-positioned to capitalize on India's infrastructure growth story in 2025 and beyond.

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