Engineering Company Forms SPV for 225 MW Andhra Pradesh Battery Storage Project: Know Details
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Bondada Engineering has incorporated a wholly owned subsidiary to develop, own and operate its 225 MW/450 MWh battery storage project awarded by AP Transco under the BOO model.
✨ Key Takeaways
Bondada Engineering Ltd has incorporated Bondada Hindupur BESS Project Private Ltd as a wholly owned subsidiary to develop and operate a 225 MW/450 MWh battery energy storage system (BESS) project awarded by AP Transco in Andhra Pradesh.
The company disclosed the incorporation on September 2, marking a formal step towards executing the battery storage project, which Bondada Engineering had earlier identified as a Rs 627 crore order.
New SPV to Develop and Operate BESS Project
The newly incorporated special purpose vehicle will undertake the financing, procurement, construction, commissioning, ownership, operation and maintenance of the project.
The project will be developed under a Build-Own-Operate (BOO) model. Bondada Engineering said the assets and related investments will be held by the new entity, subject to applicable contractual and regulatory requirements.
As part of the incorporation, Bondada Engineering subscribed to 1,00,000 equity shares of the subsidiary at a face value of Rs 10 each. This translates into an initial paid-up equity capital of Rs 10 lakh. The company will hold the entire equity capital of the SPV.
Also Read - Engineering Stock Falls 2%; Subsidiary Completes Exit From German Joint Venture
Andhra Pradesh Project Forms a Significant Part of BESS Order Book
The Andhra Pradesh project represents nearly 43 per cent of Bondada Engineering's disclosed BESS order book of around Rs 1,463 crore as of March 31, 2026.
The company's BESS order book also includes a 200 MW/400 MWh battery storage project for Tamil Nadu Generation and Distribution Corporation.
Shift From EPC Towards Asset Ownership
The structure of the Andhra Pradesh project differs from a conventional EPC contract.
Under the BOO model, Bondada Engineering will be responsible for financing and retaining ownership of the storage asset while operating and maintaining the project. Revenue will be generated under the project agreement over its operating period.
Bondada Engineering Share Price Performance
Bondada Engineering Ltd shares opened at Rs 284.95 on September 2 and touched a low of Rs 277.00 during the trading session. From the opening price of Rs 284.95 to the intraday low of Rs 277.00, the stock declined by around 2.79 per cent.
The stock has also remained under pressure across several timeframes. Bondada Engineering shares have declined 6.11 per cent over the past one month, 23.66 per cent year-to-date and 29.50 per cent over the past one year.
About Bondada Engineering Ltd
Incorporated in 2012, Bondada Engineering Ltd provides engineering, procurement and construction (EPC) and operations and maintenance (O&M) services to companies operating in the telecom and solar energy sectors.
Disclaimer: The article is for informational purposes only and not investment advice