Rajesh Power Services Limited has secured fresh turnkey contracts worth ₹653.12 crores (inclusive of taxes) from Paschim Gujarat Vij Company Limited (PGVCL) for the development of underground power distribution infrastructure across Gujarat, reinforcing the company’s presence in one of India’s fastest-growing utility infrastructure segments.
According to the company’s regulatory filing with the Bombay Stock Exchange (BSE), the contracts involve converting existing 11-kV High Tension (HT) and Low Tension (LT) overhead electricity distribution networks into underground cable systems across the Bhavnagar, Anjar, Junagadh and Porbandar distribution circles. The scope of work also includes the installation of Ring Main Systems (RMS), GIS-based network mapping, and digital asset tagging, reflecting the increasing adoption of technology-driven utility infrastructure by state-owned power distribution companies.
A Significant Addition to the Company’s Order Pipeline
The ₹653.12 crore contract represents a meaningful addition to Rajesh Power Services’ project portfolio and further strengthens its order pipeline in the power transmission and distribution sector.
For EPC companies, large infrastructure orders provide better revenue visibility as income is recognized over the course of project execution rather than at the time the contract is awarded. As a result, the successful execution of such projects can contribute to sustained business activity over multiple reporting periods. The order also reinforces Rajesh Power Services’ capabilities in underground power distribution, an area witnessing growing investment by utilities, as urbanization, electricity demand and network modernization continue to accelerate across India.
Why Underground Power Distribution Is Gaining Importance
Utilities across several Indian states are increasingly replacing conventional overhead electricity lines with underground cable networks to improve grid reliability and minimize service disruptions.
Underground distribution systems generally offer several operational advantages, including:
- Reduced power outages caused by storms, strong winds and falling trees;
- Improved public safety by eliminating exposed overhead conductors;
- Lower maintenance requirements over the long term;
- Better utilization of urban spaces with reduced visual clutter;
- Enhanced reliability for densely populated cities and industrial areas.
As states continue to invest in resilient and modern electricity infrastructure, underground cabling projects are expected to remain an important segment within India’s power distribution sector.
Technology-Driven Utility Infrastructure
Beyond cable installation, the PGVCL projects include the implementation of Ring Main Systems (RMS), GIS mapping and asset tagging.
A Ring Main System improves network reliability by allowing electricity to be supplied through alternate routes if a fault develops in one section of the network, thereby reducing outage duration. Similarly, Geographic Information System (GIS) mapping enables utilities to digitally record and manage underground infrastructure, improving maintenance planning, fault identification and long-term asset management. Digital asset tagging further enhances operational efficiency by providing accurate identification and tracking of network assets throughout their lifecycle.
Strategic Significance for Rajesh Power Services
Rajesh Power Services has steadily built expertise across multiple power infrastructure verticals, including transmission lines, substations, underground cable systems and distribution network development. The latest order from PGVCL strengthens the company’s credentials in executing complex underground power distribution projects, while reinforcing its relationship with one of Gujarat’s leading electricity distribution companies.
Given the increasing emphasis on grid modernization and infrastructure resilience, successful execution of projects of this nature could further enhance the company’s competitive positioning in future utility tenders.
Factors Investors May Watch
While the order represents a significant business development, market participants are also likely to monitor several execution-related factors over the coming quarters. These include project execution timelines, working capital management, procurement efficiency, raw material cost trends and the pace of revenue recognition as work progresses. As with most EPC contracts, timely execution and effective cost management will remain important determinants of project profitability.
Management Commentary
“The award of ₹653.12 crore worth of orders from PGVCL is a strong endorsement of Rajesh Power Services Limited’s execution capabilities, technical expertise, and proven track record in delivering complex power infrastructure projects. These orders further reinforce our leadership in underground power distribution projects and our ability to execute large-scale, time-bound assignments with the highest standards of quality and safety. We are proud to partner with PGVCL in strengthening Gujarat’s power distribution network and remain committed to creating long-term value for all our stakeholders,” said Mr. Kurang Panchal, Managing Director, Rajesh Power Services Limited.
About the Project
The contracts include:
- Conversion of existing 11-kV HT and LT overhead electricity lines into underground cable networks;
- Installation of Ring Main Systems (RMS);
- GIS-based mapping of utility assets;
- Digital asset tagging;
- Turnkey execution across Bhavnagar, Anjar, Junagadh and Porbandar circles under PGVCL.
Rajesh Power Services Limited is a specialized Engineering, Procurement and Construction (EPC) company engaged in India’s power transmission and distribution sector. Its operations include turnkey execution of GIS and AIS substations, extra-high-voltage power cable systems, transmission lines, distribution network development and operation & maintenance services.
The company executes projects across Gujarat, Rajasthan, Uttarakhand, Maharashtra, Madhya Pradesh and Odisha and holds multiple ISO certifications covering quality management, environmental management, occupational health & safety, energy management and asset management.
