Quality Power Electrical Equipments Limited, a prominent player in the electrical equipment sector, has secured a domestic order for the supply of reactors used in Flexible AC Transmission Systems (FACTS) applications. This order marks a significant milestone for the company and further strengthens its position in the industry.

Key Details of the Contract

The contract, awarded by a domestic entity, involves the supply of reactors that will play a crucial role in the operation of Power Transmission systems, particularly for FACTS applications. FACTS, or Flexible AC Transmission Systems, is a technology used to enhance the controllability and stability of electrical power systems, particularly in long-distance transmission, which is essential for maintaining grid stability.

The estimated value of the order is approximately ₹19.7 Crores, based on the basic Ex warehouse (EXW) value. The company is expected to deliver the reactors within an estimated time period of 15-18 months. This order represents a single large contract, underscoring the scale of the project and the trust placed in Quality Power Electrical Equipments Ltd.

Nature of the Contract and Execution Timeline

This single large order is a significant boost for the company, allowing it to further diversify its portfolio and provide high-quality solutions in the power transmission sector. The reactor units will be crucial for improving the efficiency of power transmission and supporting the growing demand for stable electrical systems in the country.

As per the terms, the reactors will be delivered over a 15-18 month period, giving the company sufficient time to manufacture, test, and deploy the equipment. This timeline also ensures that the company can meet the high standards required for such essential infrastructure.

No Related Party Transactions

Notably, the order does not involve any related party transactions, and there is no indication of any interest from the promoter or promoter group in the entity awarding the contract. This ensures that the transaction is conducted on an arm's length basis, maintaining transparency and fairness in the process.

Impact on Quality Power Electrical Equipments Ltd

This contract is a crucial step forward for Quality Power Electrical Equipments Ltd, reflecting the growing demand for advanced electrical solutions in India’s power sector. The company’s ability to secure such a high-value order is a testament to its expertise in providing cutting-edge electrical equipment for critical infrastructure.

The supply of these reactors will contribute to improving the overall stability and efficiency of power transmission systems, and the successful execution of this contract will enhance the company’s reputation as a reliable supplier in the energy and power sector.

Conclusion

The ₹19.7 Crore order for FACTS reactors is a substantial achievement for Quality Power Electrical Equipments Ltd, and it underscores the company’s capabilities in the power transmission industry. With a clear timeline for delivery and a strong relationship with the awarding domestic entity, the company is poised to deliver high-quality equipment that will contribute significantly to the development of India’s power grid infrastructure.

As the company moves forward with the execution of this order, it will continue to focus on meeting deadlines, maintaining quality standards, and reinforcing its position as a leader in the electrical equipment industry.

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