South West Pinnacle Exploration Limited (SWPE) has secured a Letter of Intimation (LoI) from Odisha Lift Irrigation Corporation Limited (OLIC) covering the installation and commissioning of 500 deep borewells across Odisha. The work order, valued at Rs. 18.71 crore, inclusive of GST, is to be completed within 180 days, as reported by Construction World.
The assignment extends beyond drilling. SWPE will carry out Vertical Electrical Sounding (VES) testing, drilling and lowering of casing pipes, besides installing submersible pumps for the borewells. The company will also undertake the associated electrification and energisation work, including construction of a three-phase low-tension (LT) line for each installation.
The contract comes with an 18-month guarantee period, which will begin after completion and commissioning of the borewells. SWPE is also required to furnish an initial security deposit equivalent to 2% of the contract value within seven days, in accordance with the terms of the order.
According to the company’s regulatory disclosure, the order has been placed by a domestic entity and is not a related-party transaction. SWPE said neither its promoters nor the promoter group has any interest in the awarding organisation and that the transaction has been entered into on an arm’s-length basis. The relevant details were submitted to the stock exchanges as part of the company’s regulatory filings.
The Rs. 18.71 crore work order is considered material for the company, with execution subject to the agreed commercial and technical conditions. SWPE will also be responsible for complying with the applicable performance and safety requirements while carrying out the project.
The company said the required information has been furnished to the exchanges for regulatory compliance, record keeping and investor information, with its company secretary communicating the particulars through the prescribed disclosures.
South West Pinnacle Exploration operates in the mineral and unconventional energy exploration space.