SEPC Ltd has received a Letter of Acceptance (LoA) worth ₹854.57 crore from Steel Authority of India Ltd (SAIL) for work on a pellet plant package at its IISCO Steel Plant in Burnpur, West Bengal.
The order, awarded by SAIL-IISCO Steel Plant on August 4, covers the Pellet Plant Balance of Plant (BOP), including civil and structural works, as part of SAIL’s 4.08 million tonnes per annum (MTPA) crude steel expansion project at Burnpur.
The contract is valued at ₹854.57 crore, net of input tax credit, according to the LoA issued by SAIL. The order was disclosed by SEPC to the stock exchanges on August 5.
32-month execution period
SEPC will have to complete the project within 32 months from the effective date of the contract. The effective date will be the date of signing of the contract or 30 days from the date of the LoA, whichever is earlier.
SAIL has instructed SEPC to mobilise resources immediately to ensure timely commencement of the work.
The contract has been awarded under the terms and conditions of SAIL’s tender issued in October 2025, along with subsequent corrigenda, technical and commercial clarifications and negotiated price terms.
₹47.58 crore additional price component
The LoA also specifies a separate amount of ₹47.58 crore for SEPC under the contract documentation. The overall contract price communicated by SAIL for the main scope stands at ₹854.57 crore, with the additional amount separately identified in the LoA.
SEPC will also be required to submit a performance bank guarantee as security deposit within 30 days of signing the contract.
Major order for SEPC
The latest win adds a sizeable order to SEPC’s project pipeline and strengthens its exposure to the steel sector, particularly large-scale plant expansion and pelletisation infrastructure.
The project forms part of SAIL-IISCO’s broader 4.08 MTPA crude steel expansion programme at Burnpur. SEPC’s scope covers the balance-of-plant component of the pellet plant, including civil and structural works.
The order was awarded by a domestic entity and is to be executed in India. SEPC said there is no stated interest of its promoter, promoter group or group companies in the entity awarding the contract.