The allotment of the tender provides us with an opportunity to scale our community boiler model on a larger platform, while requiring limited working capital deployment. The entire project cost will be funded by Himachal Pradesh Bulk Drug Park Infrastructure Limited. This project will mark a significant milestone in Steamhouse’s journey, transforming the company from a Gujarat-focused player into a multi-state, pan-India community boiler solutions provider. In addition to enabling the expansion of our community boiler model, the tender also provides us with an exclusive long-term Operations & Maintenance (O&M) business opportunity, supporting sustainable and recurring revenue growth. Given the asset-light nature of the model and limited capital deployment required from Steamhouse, the project is expected to generate strong ROCE.
The project comprises a 300 TPH Steam Plant with indicative power generation capacity of 30 MW, along with the associated steam distribution network. The EPC execution period is 24 months, followed by the long-term O&M period.
The EPC contract value is ₹311 crore, inclusive of GST, providing Steamhouse with an immediate EPC execution opportunity alongside a long-term O&M business.
Key Strategic Highlights
Asset-Light Business Model: The project strengthens Steamhouse’s asset-light growth strategy. The Company will undertake the engineering, procurement, construction, commissioning and O&M of the project under the contractual framework prescribed by the Authority, enabling expansion of its operating platform without the same balance-sheet intensity associated with independently developing comparable utility assets.
Long-Term Cost and Markup-Based Framework: The project provides a structured commercial framework considering actual operating costs, permissible markup and recoupment of Opex Gap Funding (OGF). The charges and revenue-sharing mechanism are linked to a standardized Internal Rate of Return (IRR) applicable to the pharmaceutical/API sector, as may be approved by the Competent Authority.
25-Year O&M Opportunity: The mandate provides for comprehensive O&M for 25 years, creating a long-duration operating opportunity for Steamhouse following completion of the EPC phase. The project is envisaged to be executed within 24 months from the commencement of the project, subject to the terms and conditions of the definitive agreement, requisite approvals, site readiness and other applicable project conditions.
Indicative 30 MW Power Generation: The project includes an indicative 30 MW co-generation facility. As per the RFP, power generated through the turbines is to be procured by the State Implementing Agency, with the Agency retaining rights over the generated power and its further distribution/sale.
OGF Recovery Mechanism: The project provides for an initial subsidised period followed by a 20-year revenue-sharing period from April 2032 to March 2052. The commercial mechanism during the revenue-sharing period considers actual operating costs, permissible markup and recoupment of OGF borne during the subsidised period.
Sustainable Fuel Opportunity: The project provides an opportunity to evaluate biomass and suitable waste-derived fuel sources, including agricultural and other permitted waste-derived fuels, subject to technical feasibility, applicable environmental regulations and approvals.
Expanding Steamhouse’s Generation Platform
The Una project is strategically significant in the context of Steamhouse’s expanding capacity.
The Company currently has approximately 345 TPH of steam generation and distribution capacity under its own generation and distribution model.
With 300 TPH being added through the Una project, along with approximately 360 TPH of additional capacity under construction, Steamhouse is building a significantly larger generation and distribution platform.
This represents a potential capacity platform of approximately 1,005 TPH, comprising existing capacity, the Una project and under-construction capacity, subject to project completion and commissioning.
The expansion reinforces Steamhouse’s strategy of developing large-scale centralized steam generation and distribution infrastructure for industrial clusters across India.
Management Commentary
Commenting on the development, Mr Vishal S. Budhia, Chairman & Managing Director, Steamhouse India Limited, said:
“The Una Steam Project marks an important milestone in Steamhouse’s growth journey. The combination of a 300 TPH Steam Plant, indicative 30 MW power generation, a ₹311 crore EPC opportunity and a 25-year O&M mandate creates a long-term platform for the Company.
The asset-light structure and structured commercial framework provide visibility into the long-term economics of the project, while the opportunity to evaluate sustainable fuels and additional common utilities further expands the potential of the platform.
With 345 TPH of existing capacity, 300 TPH being added through Una and another 360 TPH under construction, Steamhouse is significantly expanding its overall generation and distribution footprint.”
About Steamhouse India Limited
Steamhouse India Limited is engaged in the development and operation of centralized steam generation and distribution infrastructure for industrial customers.
The Company currently has approximately 345 TPH of steam generation and distribution capacity under its own generation and distribution model and is expanding its portfolio through additional projects under construction and development.
With the Una project adding 300 TPH and approximately 360 TPH of additional capacity under construction, Steamhouse is focused on building a scalable and diversified steam generation and distribution platform serving industrial clusters across India.
Certain statements relating to future projects, capacity additions, additional utilities, alternative fuels and future business opportunities are forward-looking in nature and are subject to technical feasibility, regulatory approvals, contractual arrangements, customer demand, commercial considerations and other risks and uncertainties.
