Synopsis: Shreeji Shipping wins 20-year Kerwa coal mine contract as 49% consortium partner with Nuravi. Handles drilling, blasting, coal sales; revenue boost expected after May guarantee submission.
Shreeji Shipping Global has secured a major long-term contract in India’s mining sector. The company received a Letter of Award (LOA) from Kerwa Coal Limited. The award appoints Shreeji as a Mine Developer and Operator (MDO) for the Kerwa coal mines.
Shreeji Shipping Global Limited’s stock, with a market capitalisation of Rs. 5,461 crores, rose Rs. 340.75, up 3 percent from its previous closing price of Rs. 334.30. Furthermore, the stock over the past year has given a return of 31.30 percent.
A 20-Year Deal
The contract runs for 20 years from the date the agreement is signed. Kerwa Coal Limited also holds the option to extend it by another five years. The extension will be at KCL’s sole discretion.
Shreeji did not win this bid alone. The company entered a joint consortium with Nuravi Imports and Exports Private Limited. Nuravi leads the consortium as the primary bid member. Shreeji holds a 49% stake in the deal. Nuravi holds the remaining 51%, along with lead responsibilities.
How the Award Came Through
Shreeji entered the race as the second eligible bidder, known as the H2 bidder. The first bidder, H1, failed to meet its obligations. As a result, KCL passed the award to Shreeji and Nuravi as the next in line.
Kerwa Coal Limited sent the award communication on March 27, 2026. However, the company disclosed it later than usual. The delay happened because the letter arrived via physical courier. Shreeji confirmed the delay was procedural and unintentional.
What the Project Involves
The scope of work is wide-ranging. Shreeji and Nuravi will handle drilling, blasting, evacuation, and selling of coal. These are core operations at the Kerwa coal mines.
However, a few conditions must be met before the contract becomes binding. The company must submit a Security Deposit and a Performance Bank Guarantee by May 15, 2026. Once fulfilled, the agreement moves into full execution mode. The final timeline for the project will depend on the approval of the mining plan. Authorities must sign off before work begins in earnest.
Revenue Impact Expected
Management believes this contract will meaningfully boost company revenues. Furthermore, it is expected to strengthen Shreeji’s overall financial performance over the long term. This is a domestic contract, awarded by an Indian entity. It marks a significant step for Shreeji as it diversifies beyond shipping into mining operations.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
