300 TPH Steam Capacity | Indicative 30 MW Power Generation | 25-Year O&M | Asset-Light Growth Model.<\/strong><\/em><\/p>\n

Surat (Gujarat) [India], September 28: <\/strong>Steamhouse India Limited (\u201cSteamhouse\u201d or the \u201cCompany\u201d) has been awarded the mandate for Engineering, Procurement and Construction (EPC), commissioning and comprehensive Operation & Maintenance (O&M) for 25 years<\/strong> of the Common Steam Plant and Co-generation Power Plant at the Bulk Drug Park, Una, Himachal Pradesh<\/strong>.<\/p>\n

The allotment of the tender provides us with an opportunity to scale our community boiler model on a larger platform, while requiring limited working capital deployment. The entire project cost will be funded by Himachal Pradesh Bulk Drug Park Infrastructure Limited<\/strong>. This project will mark a significant milestone in Steamhouse\u2019s journey, transforming the company from a Gujarat-focused player into a multi-state, pan-India community boiler solutions provider. In addition to enabling the expansion of our community boiler model, the tender also provides us with an exclusive long-term Operations & Maintenance (O&M) business opportunity<\/strong>, supporting sustainable and recurring revenue growth. Given the asset-light nature of the model and limited capital deployment required from Steamhouse, the project is expected to generate strong ROCE.<\/p>\n

The project comprises a 300 TPH Steam Plant with indicative power generation capacity of 30 MW<\/strong>, along with the associated steam distribution network. The EPC execution period is 24 months<\/strong>, followed by the long-term O&M period.<\/p>\n

The EPC contract value is \u20b9311 crore, inclusive of GST<\/strong>, providing Steamhouse with an immediate EPC execution opportunity alongside a long-term O&M business.<\/p>\n

Key Strategic Highlights<\/strong><\/h3>\n
Asset-Light Business Model:<\/strong> The project strengthens Steamhouse\u2019s asset-light growth strategy. The Company will undertake the engineering, procurement, construction, commissioning and O&M of the project under the contractual framework prescribed by the Authority, enabling expansion of its operating platform without the same balance-sheet intensity associated with independently developing comparable utility assets.<\/p>\n
Long-Term Cost and Markup-Based Framework:<\/strong> The project provides a structured commercial framework considering actual operating costs, permissible markup and recoupment of Opex Gap Funding (OGF). The charges and revenue-sharing mechanism are linked to a standardized Internal Rate of Return (IRR) applicable to the pharmaceutical\/API sector, as may be approved by the Competent Authority.<\/p>\n
25-Year O&M Opportunity:<\/strong> The mandate provides for comprehensive O&M for 25 years<\/strong>, creating a long-duration operating opportunity for Steamhouse following completion of the EPC phase. The project is envisaged to be executed within 24 months<\/strong> from the commencement of the project, subject to the terms and conditions of the definitive agreement, requisite approvals, site readiness and other applicable project conditions.<\/p>\n
Indicative 30 MW Power Generation:<\/strong> The project includes an indicative 30 MW co-generation facility<\/strong>. As per the RFP, power generated through the turbines is to be procured by the State Implementing Agency, with the Agency retaining rights over the generated power and its further distribution\/sale.<\/p>\n
OGF Recovery Mechanism:<\/strong> The project provides for an initial subsidised period followed by a 20-year revenue-sharing period from April 2032 to March 2052<\/strong>. The commercial mechanism during the revenue-sharing period considers actual operating costs, permissible markup and recoupment of OGF borne during the subsidised period.<\/p>\n
Sustainable Fuel Opportunity:<\/strong> The project provides an opportunity to evaluate biomass and suitable waste-derived fuel sources, including agricultural and other permitted waste-derived fuels, subject to technical feasibility, applicable environmental regulations and approvals.<\/p>\n
Expanding Steamhouse\u2019s Generation Platform<\/strong><\/h3>\n
The Una project is strategically significant in the context of Steamhouse\u2019s expanding capacity.<\/p>\n
The Company currently has approximately 345 TPH of steam generation and distribution capacity<\/strong> under its own generation and distribution model.<\/p>\n
With 300 TPH<\/strong> being added through the Una project, along with approximately 360 TPH of additional capacity under construction<\/strong>, Steamhouse is building a significantly larger generation and distribution platform.<\/p>\n
This represents a potential capacity platform of approximately 1,005 TPH<\/strong>, comprising existing capacity, the Una project and under-construction capacity, subject to project completion and commissioning.<\/p>\n
The expansion reinforces Steamhouse\u2019s strategy of developing large-scale centralized steam generation and distribution infrastructure for industrial clusters across India.<\/p>\n
Management Commentary<\/strong><\/h3>\n
Commenting on the development, Mr Vishal S. Budhia, Chairman & Managing Director, Steamhouse India Limited<\/strong>, said:<\/p>\n
\u201cThe Una Steam Project marks an important milestone in Steamhouse\u2019s growth journey. The combination of a 300 TPH Steam Plant, indicative 30 MW power generation, a \u20b9311 crore EPC opportunity and a 25-year O&M mandate creates a long-term platform for the Company.<\/em><\/p>\n
The asset-light structure and structured commercial framework provide visibility into the long-term economics of the project, while the opportunity to evaluate sustainable fuels and additional common utilities further expands the potential of the platform.<\/em><\/p>\n
With 345 TPH of existing capacity, 300 TPH being added through Una and another 360 TPH under construction, Steamhouse is significantly expanding its overall generation and distribution footprint.\u201d<\/em><\/p>\n
About Steamhouse India Limited<\/strong><\/h3>\n
Steamhouse India Limited is engaged in the development and operation of centralized steam generation and distribution infrastructure for industrial customers.<\/p>\n
The Company currently has approximately 345 TPH of steam generation and distribution capacity<\/strong> under its own generation and distribution model and is expanding its portfolio through additional projects under construction and development.<\/p>\n
With the Una project adding 300 TPH<\/strong> and approximately 360 TPH of additional capacity under construction<\/strong>, Steamhouse is focused on building a scalable and diversified steam generation and distribution platform serving industrial clusters across India.<\/p>\n
Certain statements relating to future projects, capacity additions, additional utilities, alternative fuels and future business opportunities are forward-looking in nature and are subject to technical feasibility, regulatory approvals, contractual arrangements, customer demand, commercial considerations and other risks and uncertainties.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
300 TPH Steam Capacity | Indicative 30 MW Power Generation | 25-Year O&M | Asset-Light Growth Model. Surat (Gujarat) [India], September 28: Steamhouse India Limited (\u201cSteamhouse\u201d or the \u201cCompany\u201d) has been awarded the mandate for Engineering, Procurement and Construction (EPC), commissioning and comprehensive Operation & Maintenance (O&M) for 25 years of the Common Steam Plant…<\/p>\n
Read More “Steamhouse India Limited Secures Rs 311 Crore EPC Mandate for 300 TPH Steam Project at Bulk Drug Park, Una”<\/span> »<\/a><\/p>\n","protected":false},"author":1,"featured_media":56275,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[54],"class_list":["post-56274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/56274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/comments?post=56274"}],"version-history":[{"count":0,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/56274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media\/56275"}],"wp:attachment":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media?parent=56274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/categories?post=56274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/tags?post=56274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}