BSNL Hands KP Green ₹819 Cr Order, Shares Tumble 4%
Overview
KP Green Engineering secured its largest-ever contract, bagging ₹819 crore in advance work orders from BSNL for telecom infrastructure. The orders cover two clusters for the government's 4G Saturation Project across multiple states. Despite the significant win, the company's stock saw a nearly 4.2% decline on Monday.
Landmark BSNL Contract Secured
KP Green Engineering Ltd. announced Monday it has secured advance work orders totaling ₹819 crore from Bharat Sanchar Nigam Limited (BSNL). These orders are for crucial telecom infrastructure under the government's ambitious 4G Saturation Project. This contract represents the largest single win in the company's operational history.
Project Scope and Geographic Reach
The substantial contract is divided into two key clusters. The first, valued at ₹483 crore including Goods and Services Tax (GST), covers Cluster C, encompassing the states of Maharashtra and Goa. The second order, worth ₹336 crore (including GST), pertains to Cluster J, which includes the Union Territories of Jammu & Kashmir and Ladakh, alongside Himachal Pradesh and Uttarakhand.
Services and Long-Term Commitment
KP Green Engineering's responsibilities will include the supply and erection of ground-based telecom towers. The company will also act as an Infrastructure-as-a-Service (IaaS) provider for allied telecom infrastructure. A significant component of the contract involves the operations and maintenance (O&M) of these sites for an initial period of five years, with a provision for an additional five-year extension in line with BSNL's project terms.
Market Reaction and Strategic Importance
Company officials stated that these orders substantially bolster its executable order book and solidify its position in the telecom infrastructure and Engineering, Procurement, and Construction (EPC) segments. The win is seen as a testament to its capability in executing large-scale, geographically dispersed government projects. However, the market reacted cautiously, with shares of KP Green Engineering Ltd. trading down 4.17% at ₹316.15 as of 11:42 am on Monday. Over the past six months, the stock has seen a decline of 37.17%.
