Oswal Pumps, Shakti Pumps shares gain up to 8% on MSEDCL orders for solar projects

Shares of Oswal Pumps and Shakti Pumps surged more than 6% each on Monday, July 6, after receiving orders from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to facilitate a major solar project under the PM Kusum B Scheme, aimed at providing solar irrigation solutions to farmers across Maharashtra.

Run by the Ministry of New and Renewable Energy, the scheme covers installation of standalone solar-powered agricultural pumps for farmers in areas with limited or no grid connectivity, helping replace diesel pumps typically used for irrigation.

Eligible farmers, individuals, groups, water user associations or cooperatives with an existing borewell and no grid connection can receive central financial assistance covering 30% of the tender cost.

The scheme initially targeted installation of 14 lakh pumps, with 10.9 lakh standalone pumps installed as of end-April this year. The government has extended the implementation deadline to March 2027 to give states more time to install the remaining pumps.

Also Read: Oswal Pumps bags additional ₹236 crore solar pump order from MSEDCL

Oswal Pumps bags order worth ₹236 crore

According to an exchange filing on July 4, Oswal Pumps received an order from MSEDCL for 10,000 off-grid DC solar photovoltaic water pumping systems, valued at about ₹235.92 crore.

The company is responsible for the design, manufacture, supply, installation, testing and commissioning of these systems, with pumps required in capacities of 3HP, 5HP and 7.5HP.

The agreement includes a five-year warranty, repair and maintenance services, and implementation of a Remote Monitoring System (RMS). Oswal must complete installation within 60 days of the issuance of the Notice to Proceed (NTP).

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Shares of Oswal Pumps gained as much as 8.5%, hitting an intraday high of ₹444.30 on Monday, but has since pared some of its gains and was trading at ₹437.80, with gains of close to 7%. The shares have declined about 17% so far this year, and close to 38% over the last 12 months.

Shakti Pumps Bags Order Worth ₹354 Crore

Shakti Pumps has signed a domestic contract to supply 15,000 solar-powered water pumping systems across Maharashtra, valued at approximately ₹353.89 crore. The company will handle everything from manufacturing and transport to final commissioning and must also complete installation within 60 days of the order's issuance, as per its exchange filing.

Also Read: Shakti Pumps receives MSEDC empanelment for 15,000 solar pumps worth ₹353.89 crore

The stock gained as much as 8.3%, hitting an intraday high of ₹621.90 on Monday morning, but has since pared some of its gains and was trading with gains of around 7% at ₹615. The shares have declined about 18% so far this year, and close to 35% over the last 12 months.