Bondada Engineering shares gain up to 9% after ₹204 crore order win in Telangana

Shares of Bondada Engineering Ltd gained up to 9% on Tuesday, May 27, after the company said it has secured a letter of award from the Telangana Power Generation Corporation Ltd to set up battery energy storage systems for ₹204.2 crore.

As per the contract, Bondada Engineering will set up 100 MWh battery energy storage systems in Telangana for "on demand" usage, under tariff-based global competitive bidding with viability gap funding under build own operate (BOO) at Shankarpally near the 400/220KV substation of the Transmission Corporation of Telangana Government (TGTRANSCO), the company said in an exchange filing.

The order is to be completed within 18 months from the execution of the power purchase agreement.

The broad consideration for the order shall be ₹204.2 crore for 12 years, the company added.

Last week, the company said it had secured an order worth ₹9,000 crore from the Andhra Pradesh government for the allocation of a landmark solar power project at various locations across the state.

The company stated that the allocation of the project is subject to ensuring that there will be no overlap with areas that have already been allotted to other developers for renewable energy projects or with the wind resource assessment studies.

The said project needs to be implemented within 24 months, following the guidelines mentioned in the Andhra Pradesh Integrated Clean Energy Policy – 2024.

Shares of Bondada Engineering gained 9% to hit an intraday high of ₹510 on Tuesday, May 27. The stock was up 5.89% at ₹495.1 apiece at 1.50 pm. It has gained 19.66% in the past month.

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