Samay Project Services Secures LOI for 10 TPD CBG Plant EPC Contract Valued at 242.50 Crore
Samay Project Services Limited (SPSL) has received a Letter of Intent (LOI) from its wholly owned subsidiary, Samay BioCNG Chittoor Private Limited (SBCPL). The LOI details an engagement for the Engineering, Procurement, Construction, Commissioning, and initial Operation & Maintenance (O&M) of a 10 TPD Compressed BioGas (CBG) Plant.The project is slated to take place in Baitapalle Village, Puthalapattu Mandal, Chittoor District, Andhra Pradesh. The scope of the contract is comprehensive, covering all aspects from detailed engineering and critical civil infrastructure development to complete mechanical works, process piping, electrical systems, instrumentation and automation, utilities, and balance of plant construction management.
SPSL will also be responsible for the initial O&M of the facility for one year following successful biological commissioning, which is extendable based on mutual agreement between the parties.
The estimated total value of the proposed EPC Contract amounts to approximately 242.50 Crore Rupees (Rupees Forty-Two Crore Fifty Lakhs only), inclusive of applicable GST. The definitive EPC Contract or Purchase Order will be issued after the completion of detailed engineering and finalization of the Bill of Quantities (BOQ) and Bill of Bill of Units (BBU).
Key details regarding the order are outlined below:
| Particulars | Details |
|---|---|
| Contract Awarding Entity | Samay BioCNG Chittoor Private Limited (Wholly Owned Subsidiary of SPSL) |
| Project Type | EPC for 10 TPD CBG Plant |
| Location | Baitapalle Village, Puthalapattu Mandal, Chittoor District, Andhra Pradesh |
| Estimated Value | Approximately 242.50 Crore (inclusive of GST) |
| Execution Deadline | Completion required by April 30, 2027, followed by approximately three months for commissioning and process stabilisation. |
The transaction represents a Related Party Transaction as the awarding entity is a wholly owned subsidiary of SPSL. The contract is proposed to be executed on an arm's length basis and is structured based on a Cost Plus 12.5% pricing methodology, which has been approved by the Audit Committee and Board of Directors of Samay Project Services Limited.
Regarding the current status, the LOI permits SPSL to immediately commence detailed engineering, vendor finalization, procurement planning, and placement of critical long-lead purchase orders to ensure timely project completion. The transaction falls within the ordinary course of business for the Company.
SAMAY Stock Price Movement
Samay Project Services Limited shares shed 4.82% in trading today, settling at ₹39.5 after plummeting from previous close. The equity saw a daily traded volume of 48,000 shares as the stock closed post-market.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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