The LoA, dated August 4, 2026, and numbered PROJECTS/EXPN-C/PP/BOP/LOA-725, awards SEPC Limited a contract for the "Pellet Plant BOP including Civil & Structural (Pellet Package-2)" as part of the 4.08 MTPA (Million Tonnes Per Annum) Crude Steel Expansion Project at SAIL's IISCO Steel Plant in Burnpur.
Key Contract Details
- Contract Value: The total value of the order is ₹854,56,71,234 (Rupees Eight Hundred Fifty Four Crore Fifty Six Lakhs Seventy One Thousand Two Hundred Thirty Four Only). This amount is stated to be net of Input Tax Credit (ITC).
- Nature of Work: The contract is for the execution of a Pellet Plant Balance of Plant (BOP), including all civil and structural works.
- Execution Timeline: The entire job must be completed within 32 months from the effective date of the contract. The effective date is defined as the date of signing of the formal contract or 30 days from the date of the Letter of Acceptance (August 4, 2026), whichever is earlier.
- Tender Reference: The contract is awarded as per the terms and conditions stipulated in Tender No. PROJECTS/EXPN-C/PP/BOP/1220 dated October 10, 2025, its Corrigendum dated November 25, 2025, and all agreed commercial and technical deviations communicated to SEPC via email on March 5, 2026, and March 10, 2026.
- Security Deposit: SEPC is required to submit a Performance Bank Guarantee (PBG) worth ₹47,58,01,737.10 (Rupees Forty-Seven Crore Fifty-Eight Lakh One Thousand Seven Hundred Thirty Seven and Ten Paisa only) within 30 days of signing the contract. The PBG must be issued by the State Bank of India (SBI) or another scheduled commercial bank in India, payable/operable at Burnpur or other major metros.
- Paying Authority: Project Finance, SAIL-ISP Burnpur, will be the authority for processing payments.
- Project Manager: Shri R. K. Gautam, AGM (Projects), will be the Project Manager from SAIL-ISP Burnpur for the contract's execution.
Next Steps & Requirements for SEPC
- The issuance of this LoA constitutes the formation of the contract.
- A formal Contract Agreement must be signed on non-judicial stamp paper within 30 days of the LoA issuance (by September 3, 2026).
- SEPC is requested to submit a detailed break-up of the final contract price within 7 working days of the LoA.
- The company is also instructed to mobilize resources immediately to ensure the timely commencement of work.
Additional Information from Annexure
- Awarding Entity: Steel Authority of India Limited - IISCO Steel Plant (ISP), Burnpur.
- Domestic/International: The order was awarded by a domestic entity and is to be executed domestically.
- Promoter Interest: It is stated that the Promoter/Promoter Group/group companies have no interest in the entity that awarded the order (SAIL).