Shares of Dilip Buildcon rallied about 7 percent on Tuesday after the company in consortium with VPR Mining Infrastructure won Rs 32,000 crore contract to develop a coal block in Punjab.
Rohan Suryavanshi, head - strategy and planning at Dilip Buildcon spoke to CNBC-TV18 about the results and his outlook for the company.
“This is a very monumental win for us. This is a project in the state of Jharkhand for the state of Punjab. So now what the central government has done is they have allotted coal blocks to different states where the respective states can get their state power companies to draw coal from,” said Suryavanshi.
“The project is in the state of Jharkhand and we have got in the rights to develop this for the next 55 years,” he added.
“The total project value would be about Rs 32,000 crore. We will be mining about 7 million metric tonnes of coal per year and the rate that we have won it at is Rs 840 per metric tonne,” said Suryavanshi.
“Even at the basic level, this mine will at least give about revenues of Rs 600 crore or so excluding goods and services tax (GST),” he further mentioned.