Ceigall India has secured a stone block mining and leasing project from the Bihar government, with a cumulative contract value of Rs. 2.15 bn, excluding GST and other taxes. The order covers operations at Bhadokhara, Block-D, under Lot-4 in Nawada district and extends for five years.

The project has an annual value of Rs. 288.2 mn, with the value scheduled to increase by 20 per cent each year during the contract period. The company will have access to a minable reserve of 419,300 cubic metres annually, amounting to 2,096,500 cubic metres over five years.

Ceigall India received the Letter of Intent (LoI) by email on September 29. The award was made by the Bihar government’s Department of Mines and Geology through competitive bidding conducted through an e-reverse auction.

The company said the order was domestic and did not involve a related party. It added that neither its promoter nor promoter group had any interest in the entity awarding the contract. The project expands the company’s activities beyond its established road construction and development operations.

Ceigall India has been diversifying into renewable energy and transmission and distribution. The company has said that 73 per cent of its order book comes from developers and that renewable energy and transmission and distribution accounted for about 36 per cent of its business after its initial public offering. It has also quoted for projects worth 25 per cent of its Rs. 270 bn opportunity in this segment.

The company separately received an LoI from REC Power Development and Consultancy for a power transmission project with an estimated total project cost of about Rs. 53 bn, including GST. Ceigall India shares rose as much as 1.44 per cent to Rs. 383 on the NSE after the announcement. The stock has gained about 40 per cent this year and more than 25 per cent over the past 12 months.