SEPC Secures Rs 854 Crore SAIL Order for Burnpur Expansion Project

CHENNAI — Engineering, procurement, and construction (EPC) solutions provider SEPC Limited announced on Thursday, August 6, 2026, that it has received a Letter of Acceptance (LoA) valued at Rs 854.57 crore from Steel Authority of India Limited (SAIL). The contract, awarded by SAIL's IISCO Steel Plant (ISP) in Burnpur, West Bengal, covers the balance-of-plant civil and structural works for a major pellet plant unit. This order aligns with state-run SAIL's broader 4.08 million tonnes per annum (MTPA) crude steel expansion program.

Scope of Contract and Execution Timeline

According to regulatory filings submitted to Indian stock exchanges, the contract is valued at Rs 854,56,71,234 (net of Input Tax Credit). Under the contract terms, SEPC will carry out the engineering, procurement, and construction tasks designated under the Pellet Plant BOP including Civil & Structural Works (Pellet Package-2).

• Contract Value: Rs 854.57 crore (excluding Input Tax Credit).

• Project Scope: Civil, structural, and balance-of-plant (BOP) engineering for Pellet Package-2.

• Execution Period: The contract schedule spans 32 months from the date of award.

• Client Unit: SAIL-IISCO Steel Plant (ISP) located at Burnpur, West Bengal.

The project forms an integral structural component of the overall expansion at Burnpur, which aims to enhance crude steel processing capacities to support national infrastructure demand.

Business Growth and Financial Backing

The award expands SEPC's presence in the industrial infrastructure sector. Formerly known as Shriram EPC Limited, the company has broadened its portfolio beyond water, wastewater, and road developments into specialized heavy industrial process plant execution.

The contract win follows a period of financial growth for SEPC Limited. In the fiscal year FY26, the company reported a total income of Rs 1,085.8 crore, compared to Rs 646.0 crore in FY25. Operating profit (EBITDA) reached Rs 108.9 crore, while net profit doubled year-over-year to Rs 53.5 crore, providing expanded working capital capacity for major industrial commitments.

Impact on Industry and Supply Chain

The 4.08 MTPA expansion at SAIL's Burnpur plant represents a key capital expenditure initiative within India's public sector steel enterprise network. For the industrial manufacturing sector, the expansion increases domestic raw material processing capacity.

For engineering sub-contractors, equipment suppliers, and construction workers in West Bengal, the 32-month execution window provides continuous industrial employment and procurement demand. For investors, the contract reinforces SEPC's revenue visibility across its core industrial EPC segment.

Official Sources Section

The information in this report is sourced directly from regulatory filings and official press announcements published by public agencies and listed entities.

Verified primary references include:

• Regulatory filings submitted under Regulation 30 of the SEBI Listing Regulations to the
  National Stock Exchange of India
  and
  BSE Limited

• Corporate press disclosures issued by
  SEPC Limited

• Operational project guidelines released by
  Steel Authority of India Limited

Quote Section

According to company officials, the contract strengthens SEPC's portfolio in heavy industrial EPC execution.

"We are pleased to receive this prestigious Letter of Acceptance from SAIL-IISCO Steel Plant for the Pellet Plant BOP Package," said Venkataramani Jaiganesh, Managing Director of SEPC Limited. "This order reflects the confidence placed in SEPC's engineering expertise and execution capabilities in delivering large-scale industrial infrastructure projects. As India's steel industry continues to expand to meet the country's long-term infrastructure and manufacturing aspirations, SEPC remains committed to delivering this project with the highest standards of quality, safety, and operational excellence."

Why It Matters

The Rs 854.57 crore order underscores ongoing capital expenditure in India's primary metal and heavy manufacturing sectors. As state-owned enterprises expand production capacity, specialized EPC firms play a critical role in delivering civil and balance-of-plant infrastructure. For market participants, the award demonstrates continued order flow into industrial construction pipelines.

Key Facts at a Glance

• Contract Value: Rs 854.57 crore (net of Input Tax Credit).

• Awarding Authority: SAIL-IISCO Steel Plant (ISP), Burnpur.

• Project Scope: Pellet Plant BOP including Civil & Structural Works (Pellet Package-2).

• Execution Timeframe: 32 months.

• Financial Context: SEPC delivered Rs 1,085.8 crore in total income during FY26.

FAQ Section

What is the value of the order won by SEPC Limited from SAIL?

The contract is valued at Rs 854.57 crore (net of Input Tax Credit).

Where is the project located?

The project will be executed at the SAIL-IISCO Steel Plant (ISP) in Burnpur, West Bengal.

What is the scheduled completion timeline for the project?

The project is scheduled for completion within a 32-month period.

What specific work will SEPC perform under Package-2?

SEPC will execute the balance-of-plant (BOP) works, including civil and structural construction for the pellet plant unit.

Source: Official regulatory disclosures filed by SEPC Limited with the National Stock Exchange of India and BSE Limited on August 6, 2026.