Contracts worth Rs 5.24 lakh cr awarded in Q1-Q3/FY23

By Team Projects Today

In the first nine months of the fiscal year 2022-23, as per the initial findings of Projects Today, 5,357 project contracts with an aggregate order value of Rs 5,24,534.16 crore were awarded. These orders (domestic and overseas) were bagged by 2,660 companies across various sectors. The total number of orders would undergo an upper correction in the coming months as information on contracts bagged by companies (especially government companies) comes with some time lag.

Services & Utilities, comprising the Social and Transport Infrastructrue sectors, accounted for a healthy 57.46 percent share of the total contracts awarded in the first three-quarters of FY23 (Q1-Q3/FY23). The sector saw finalisation of 4,411 contracts worth Rs 3,01,394.32 crore. Of the 5,357 contracts finalised, 95 were of mega size with job works of Rs 1,000 crore or more. These contracts together valued at Rs 2,69,041.14 crore.

Within the Infrastructure sector, Roadways, Railways, Water & Sewerage Pipeline & Distribution, Power Distribution, Water, Sewage & Effluent Treatment, Community Services, Hospitals and Real Estate sectors were star performers and accounted for bulk of the project contracts awarded during Q1-Q3/FY23.

In the Roadways sector, as many as 1,638 contracts valued at Rs 90,985.03 crore were awarded during the nine months period. The sector accounted for 17.35 percent of the total contracts awarded during the period. In this sector, National Highways Authority of India (NHAI) awarded 130 contracts with an aggregate value of Rs 32,324.46 crore. Some of the major contracts includes:

1. Gawar Constructions in JV with Bharat Construction (India) bagged a major contract worth Rs 2,070 crore for four-laning of NH-5 from Shakral village to Dhalli section in the state of Himachal Pradesh on Hybrid Annuity Mode (HAM).

2. Dilip Buildcon bagged a contract worth Rs 1,955 crore for four-laning of Urga Pathalgaon section of NH-130A from design Ch. 70.200 to Ch. 157.745 (from Bhaisma to Taruama) under BMP (Raipur Dhanbad EC) in Chhattisgarh on HAM basis.

3. Rail Vikas Nigam in consortium with S.P. Singla Constructions bagged a contract worth Rs 1,844.77 crore for four-laning of NH-5 (old NH-22) from Kaithlighat to Shakral village in Himachal Pradesh on HAM basis.

Among the private road builders, Adani Road Transport awarded two major contracts. These were:

1. H. G. Infra Engineering bagged a contract worth Rs 4,970.99 crore for execution of civil & associated works on EPC basis for development of an access controlled six-lane greenfield Ganga Expressway [Group-II].

2. ITD Cementation India bagged a contract worth Rs 4,850 crore for execution of civil & associated works on EPC basis for development of an access controlled six-lane greenfield Ganga Expressway [Group-IV].

Railways expansion plans got a major boost with the finalisation of 241 contracts valued at Rs 47,378.16 crore. The sector accounted for 9.03 percent of the total contracts awarded during the period. The National High-Speed Rail Corporation (NHSRCL) gave out five contracts worth Rs 7,153.53 crore. Two of these were bagged by Larsen & Toubro (L&T):

1. L&T in consortium with Sojitz Corpn. bagged a major contract worth Rs 3,810.54 crore to construct the Sabarmati Depot (MAHSR- D-2) in the state of Gujarat.

2. L&T bagged another contract worth Rs 3,141.99 crore for design, supply and construction of track & track related works including testing and commissioning of double line high speed railway between Vadodara (MAHSR Km. 393.700) and Sabarmati Depot and Workshop (MAHSR Km. 509.875) in the state of Gujarat.

Apart from this, the Chennai Metro Rail (CMRL) awarded nine contracts with an aggregate value of Rs 5,017.83 crore. These include:

1. Hitachi Rail STS India in consortium with Hitachi Rail STS SPA bagged a contract worth Rs 1,621.19 crore to install signalling and train control systems on the 118.9 km phase-2 corridors for Chennai Metro Rail Project.

2. L&T bagged a contract worth Rs 963 crore for construction of elevated viaduct (approximate length 10 km) including elevated ramp and ten (10) elevated metro stations of Phase- II Chennai Metro Rail Project.

In the Water & Sewerage Pipeline & Distribution sector, a total of 870 projects contracts were awarded to execute various jobs worth Rs 33,842.63 crore. HFCL in JV with JWIL Infra bagged a major contract worth Rs 1,770 crore from the Uttar Pradesh State Water & Sanitation Mission for providing EPC services including provision for laying of optical fiber cables, for execution of Rural Water Supply Network in Varanasi Revenue Division in the state of Uttar Pradesh.

The Water, Sewage & Effluent Treatment sector saw finalisation of 89 contracts worth Rs 31,145.86 crore. The Municipal Corporation of Greater Mumbai (MCGM) gave out seven contracts for the upgradation of Sewage Treatment Plants (STPs) under the Mumbai Sewage Disposal Project-II worth Rs 24,149.11 crore. The seven STPs with a total capacity to treat 2,464 million litre sewage daily will be constructed by SUEZ India in JV with SUEZ International at Worli, Welspun Enterprises in JV with EDAC at Dharavi, Larsen & Toubro (L&T) at Bandra, DRN Infrastructure at Versova, NCC at Malad, GVPR Engineers at Ghatkopar and JWIL in JV with OMIL-SPML at Bhandup. While STPs at six locations will be upgraded, a new STP will be constructed at Dharavi. The Other Community Services sector saw finalisation of 616 new contracts worth Rs 19,366.28 crore. Jai Ambey Emergency Services (I) bagged the largest contract worth Rs 715.71 crore from the Madhya Pradesh Police for upgradation, operation and maintenance of Dial 112/100 Project Phase-II in the state on turnkey basis.

RITES bagged a notable contract worth Rs 682.8 crore from the Indian Institute of Technology, Delhi (IIT, Delhi) for complete planning, design, execution, construction of buildings and other services for the IIT Delhi on turnkey basis.

In the Hospital sector, during Q1-Q3/FY23 period, 138 new contracts worth Rs 8,636.03 crore were awarded. NCC bagged a mega contract worth Rs 1,058.83 crore from the HLL Infra Tech Services for design, engineering, procurement and construction (EPC) including operation & maintenance of All India Institute of Medical Sciences at Bibinagar in Telangana.

In the Real Estate sector, a total of 141 projects contracts were awarded to execute the job with an aggregate value of Rs 7,985.61 crore. Capacite Infraprojects bagged a major contract worth Rs 695 crore from the Saifee Burhani Upliftment Trust for construction of core and shell work at Sector 04 of SBUT Project located at Ward C, Bhendi Bazar, Mumbai.

The Telecom Services sector, 33 new contracts worth Rs 5,781.76 crore were awarded. Skipper bagged a major contract worth Rs 2,570 crore from Bharat Sanchar Nigam for supply and erection of ground based telecom towers, infrastructure as a service provider (IaaSP) for supply, installation of Infrastructure items and subsequent O&M for 5 years extendable to 5 more years in the uncovered villages of India under 4G saturation projects. The works are to be executed in the states of Rajasthan and Odisha and includes development of approx. 3,350 tower location sites. Projects-related orders in the Mining sector accounted for 21.77 percent of the total share in Q1-Q3/FY23. As many as 180 contracts with orders totalling Rs 1,14,214.21 crore were awarded. In the Coal sector, a total of 152 project contracts were awarded for mine development and operation jobs with an aggregate value of Rs 1,12,538.34 crore. Some of the major contracts awarded were:

1. Essel Mining & Industries bagged a contract from South Eastern Coalfields worth Rs 27,656.84 crore for development & operation of Madannagar OC at Bhatgaon area, Bisrampur Coalfield in Chhattisgarh.

2. Adani Enterprises secured a contract from the South Eastern Coalfields worth Rs 18,604.98 crore for development & operation of Pelma OC in Raigarh Area, Mand-Raigarh coalfield in Raigarh district of Chhattisgarh.

3. ACB (India) bagged a contract from Bharat Coking Coal worth Rs 5,561.97 crore for setting of 2.5 MTPA Moonidih Coal Washery on BOM Concept.

4. Montecarlo bagged a contract from Eastern Coalfields worth Rs 4,800.37 crore for development and operation of Hura-C OCP in Rajmahal Coal fields, Jharkhand.

The Iron Ore sector saw finalisation of two new contracts. Of this, L&T bagged a major contract from ArcelorMittal Nippon Steel India for building a six MTPA Ore Beneficiation Plant at Sagasahi in Odisha on EPC basis.

Projects-related orders in the Electricity sector accounted for 9.88 percent of the total contracts value awarded in the first nine months of FY23. The period saw awarding of 233 contracts worth Rs 51,805.69 crore.

Within the Electricity sector, the Solar-based Power sector saw finalisation of 49 new contracts worth Rs 20,345.81 crore. Tata Power Solar Systems bagged a major contract worth Rs 5,500 crore from the Satluj Jal Vidyut Nigam (SJVN) for development of 1000 MW (AC) of ground mounted solar project in Bikaner, Rajasthan.

Another major contract in Solar-based Power sector was awarded. Power Mech Projects (PMPL) bagged a contract from Adani Power for seven flue gas desulphurization [FGD] projects with an aggregating value of Rs 6,771.2 crore. These seven projects would be implemented at Adani Group’s coal-based power plants in Mundra, Tiroda, Kawai, Udupi, Mahan, Avantha Bhandar & Raikheda. The Coal/Lignite-based Power sector saw finalisation of 136 new contracts worth Rs 19,292.79 crore. Bharat Heavy Electricals (BHEL) bagged a notable contract worth Rs 7,406.77 crore from NTPC for Talcher Thermal Power Project Stage-III (2x660 MW), Odisha on EPC basis.

The Hydel-based Power sector witnessed finalisation of 22 mega contracts with an aggregate value of Rs 8,262.67 crore. Megha Engineering & Infrastructures bagged the largest contract worth Rs 4,427.77 crore from NHPC for turnkey execution of 850 MW Ratle Hydro Electric Project located at Kishtwar district in Jammu & Kashmir.

In the Manufacturing sector, 227 project contracts valued at Rs 33,791.58 crore were awarded. The sector accounted for 6.44 percent of the total contracts awarded during Q1-Q3/FY23.

In the Railway Wagon & Equipment sector, 11 new contracts worth Rs 16,839.37 crore were awarded. Titagarh Wagons bagged a major contract worth Rs 7,838 crore from Indian Railways to manufacture and supply 24,177 wagons consisting of 19,854 BCNA wagons and 4,323 BOXNHL wagons.

The Petroleum Products [Refinery] sector saw finalisation of 113 new contracts worth Rs 8,965.19 crore. L&T bagged a major contract worth Rs 4,812.07 from the Indian Oil Corporation (IOCL) for setting up a Residue Hydrocracker Unit (RHCU) for Panipat Refinery Expansion Project (P25). In the Aircraft sector, four new contracts worth Rs 4,086.21 crore were awarded. Bharat Dynamics bagged a major contract worth Rs 2,971 crore from the Government of India, Ministry of Defence for supply of ASTRA MK-I Beyond Visual Range (BVR) Air to Air Missile and associates equipment to Indian Air Force & Indian Navy.

In the Irrigation sector, as many as 306 contracts with an order value of Rs 23,328.36 crore were awarded during the nine months. Narmada Valley Development Authority (NVDA) awarded 11 new contracts worth Rs 8,757.75 crore. Of these, Adani Enterprises bagged a major contract worth Rs 3,246.15 crore for the construction of Shakkar Micro Irrigation Project on a turnkey basis.

Orders by States

Among the states, Maharashtra topped the table with 1,117 project contracts worth Rs 74,124.47 crore being awarded during Q1-Q3/FY23. Chhattisgarh grabbed the second spot with 94 contracts valued at Rs 63,233.27 crore. The two toppers cornered around 26 percent of the total project orders finalised in the first nine months of FY23.

Madhya Pradesh with cumulative contract value of Rs 38,022.36 crore ranked third. Rajasthan with an aggregate contract value of Rs 30,003.84 crore and Gujarat with Rs 28,984.24 crore settled with fourth and fifth positions.

Orders by Awarders & Awardees

South Eastern Coalfields, one of the subsidiaries of Coal India, emerged as the top project contract awarder by finalising 44 orders worth Rs 59,726 crore. This include the largest order of Rs 27,656.84 crore awarded during the Survey period.

National Highways Authority of India finalised 130 highways contract with a total work order of Rs 32,324.46 crore. It was followed by the Municipal Corporation of Greater Mumbai with 14 orders worth Rs 26,527.67 crore. NTPC, Indian Railways and Indian Oil Corporation were the other top awarders.

In all, 2,660 awardee companies won 5,357 project contracts finalized in the first nine months of FY23. While in terms of order value, Adani Enterprises was way ahead of others with nine orders worth Rs 32,278.923 crore, in terms of number of orders bagged, KEC with 72 orders (Rs 15,566.37 crore) and Larsen & Toubro with 70 orders (Rs 27,835.25 crore) were way ahead of others. Essel Mining and Industries also figured among the top five Awardees with a single order worth Rs 27,656.84 crore for the development & operation of Madannagar OC at Bisrampur Coalfield in Chhattisgarh.

Overseas Contracts

Indian companies bagged 62 overseas contracts in sectors like Power Distribution, Other Shipping Infrastructure, Water, Sewage & Effluent Treatment, etc in countries like Saudi Arabia, Maldives, USA, etc. Rail Vikas Nigam bagged one of the major overseas contracts for the development of UTF (Uthuru Thila Falhu-Island) Harbour.

Another major overseas contract was given out by Societe Nationale Des Eaux Du Senegal (Sones) to Va Tech Wabag in consortium with Toyota Tsusho Corpn., and Eiffage Genie Civil for design, build, operate (DBO) order, for the 50 MLD (expandable to 100 MLD) Mamelles Sea Water Desalination Project.