Roadways topped with Rs 2.05 lakh cr contracts

By Team Projects Today

As per the initial findings of Projects Today, a total of 7,773 contracts with an order value totalling Rs 8,83,198.79 crore were awarded in FY2023. These orders (Domestic & Overseas) were bagged by 3,555 companies across various sectors. The 7,773 finalised contracts include 80 overseas contracts bagged by Indian companies. As information of project contracts awarded comes with a time lag, the number is expected to increase further in the coming months.

Even considering the currently available contracts figures, the total value of contracts disbursed in FY2023 at Rs 8,83,198.79 crore indicates the possibility of higher capex spending when compared with the total value of contracts worth Rs 5,97,557 crore awarded in the form of 7,026 contracts in FY2022.

Another notable trend is the phenomenal increase in the total contract amount finalised in the form of mega contracts (worth Rs 1,000 crore and above). As against 157 mega contracts worth Rs 2,79,286 crore finalised in FY2022, 154 mega project contracts with an aggregate value of Rs 4,49,206.94 crore were awarded in FY2023. Again, the numbers for FY2023 will be revised upwards in the coming months.

By Sectors

The Infrastructure sector, comprising Social and Transport infrastructure projects, accounted for a high share of 59.74 percent of the total contracts awarded in FY2023. The sectors saw finalisation of 6,512 contracts with an order value of Rs 5,27,593.54 crore. Within the Infrastructure sector, Roadways, Water Pipelines & Distribution, Railways, Water, Sewage & Effluent Treatment, Community Services, Hospitals, Real Estate and Shipping Infrastructure were star performers, accounting for bulk of the project contracts awarded.

In the Roadways sector, as many as 2,411 contracts valued at Rs 2,05,724.72 crore were awarded during the fiscal. The sector accounted for 23.29 percent of the total contracts. Among the project promoters, the National Highways Authority of India (NHAI) remained frontrunner with 285 road building contracts with an aggregate value of Rs 1,24,266.21 crore. Of these, 10 contracts were awarded for construction of six-lane greenfield Varanasi-Ranchi-Kolkata Highway with a total value of Rs 11,968.03 crore. Apart from this, 14 contracts were given out for Bengaluru-Vijayawada Economic Corridor with an aggregate value of Rs 9,657.05 crore. Three major contracts were awarded for the four-lane Mancherial-Warangal Greenfield highway in Telangana.

Of the 285 highways contract finalised by the NHAI, 90 were awarded under the hybrid annuity (HAM) mode. These road projects entailed a total investment of Rs 79,011.55 crore. A year ago, NHAI awarded 105 road projects under the HAM more.

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 the 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 the development of an access controlled six lane greenfield Ganga Expressway [Group-IV].

Increased finalization of contracts was also witnessed in the Water & Sewerage Pipeline & Distribution sector. As many as 1,373 new contracts with a total value of Rs 65,259.90 crore were finalised in this sector.

1. Dilip Buildcon in JV with Skyway Infraprojects bagged a contract worth Rs 1,947.06 crore for execution of Rewa-Bansagar Multi Villages Scheme (Total Villages 1411).

2. KEC International bagged a contract worth Rs 1,872.88 crore for execution of Satna-Bansagar-2 Multi Villages Scheme (Total Villages 995).

3. Dilip Buildcon in JV with Skyway Infraprojects bagged another major contract worth Rs 1,400.04 crore for Gandhisagar-2 Multi-Village Scheme.

4. LCC Projects bagged a contract worth Rs 1,386.49 crore for execution of Sidhi-Bansagar Multi Villages Scheme (Total Villages 677).

Capex activities in the Railways sector got a major boost with 301 project contracts valued at Rs 60,179.34 crore being awarded. The National High-Speed Rail Corporation (NHSRCL) gave out six contracts worth Rs 10,834.53 crore. Of these, some of the major contracts were:

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

2. Hindustan Construction Company (HCC) in JV with Megha Engineering & Infrastructures bagged a contract worth Rs 3,681 crore for design & construction of Mumbai underground station, cut & cover tunnel, and shaft-1 from MAHSR km 0.255 to km 0.775 at Bandra-Kurla Complex for the Mumbai-Ahmedabad High Speed Rail project on design-build lump sum price basis.

3. 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 for double line high speed railway between Vadodara and Sabarmati Depot and Workshop in Gujarat. The two major metro rail operators, the Chennai Metro Rail (CMRL) and the Delhi Metro Rail Corporation (DMRC) finalised high numbers of contracts during FY2023. While the CMRL awarded 14 contracts with an aggregate value of Rs 6,751.81 crore, the DMRC finalised 28 contracts worth Rs 5,344.34 crore.

The Water, Sewage & Effluent Treatment sector saw the finalisation of 123 contracts worth Rs 39,680.24 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, L&T at Bandra, DRN Infrastructure at Versova, NCC at Malad, GVPR Engineers at Ghatkopar and JWIL Infra in JV with OMIL-SPML at Bhandup. While STPs at six locations will be upgraded, a new STP will be constructed at Dharavi.

Another notable contract worth Rs 4,400 crore, in this sector, was secured by Va Tech Wabag in JV with Metito Overseas from Chennai Metropolitan Water Supply & Sewerage Board for the construction of 400 MLD seawater reverse osmosis (SWRO) desalination plant at Perur, Chennai.

The Other Community Services sector saw finalisation of 931 new contracts worth Rs 28,029.56 crore. ITD Cementation India bagged a major contract worth Rs 832.46 crore from Military Engineer Services for the construction of Thal Sena Bhawan at Delhi Cantt under GE (P) B/R Thal Sena Bhawan Delhi Cantt-10 on EPC basis.

In the Hospital sector, a total of 198 new contracts worth Rs 15,092.46 crore were awarded. NCC bagged a high-ticket 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. Another major contract, in this sector, was secured by Ahluwalia Contracts (India) worth Rs 723.34 crore from Tata Memorial Centre for the construction of cancer hospital building - Platinum Jubilee Block for Tata Memorial Centre at Parel.

The Other Shipping Infrastructure sector saw finalisation of 35 new project contracts worth Rs 13,875.83 crore. Hindustan Ports (HPPL), the Indian arm of DP World bagged a major contract worth Rs 4,243 crore from Deendayal Port Authority to build a 2.19 million twenty-foot equivalent units (TEUs) capacity container at terminal at Tuna-Tekra in Deendayal Port, Gulf of Kutch, Gujarat.

In the Real Estate sector, a total of 199 projects contracts were awarded to execute construction related works with an aggregate value of Rs 11,707.29 crore. Ramacivil India construction bagged a contract worth Rs 780.54 crore from the Central Public Works Department (CPWD) for redevelopment of general pool residential colony at Sriniwaspuri Phase IIA in Delhi.

In the Telecom Services sector, a total of 42 new contracts worth Rs 6,773.09 crore were awarded. Skipper, one of the leading manufacturers for Transmission & Distribution structures, bagged a major contract worth Rs 2,570 crore from Bharat Sanchar Nigam (BSNL) for supply and erection of ground based telecom towers, infrastructure as a service provider 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 17.65 percent of the total share. As many as 235 contracts worth Rs 1,55,888.85 crore were awarded in FY2023. Bulk of the contracts were finalised in the coal mining sector.

In the Coal sector, 197 project contracts were awarded to execute mostly the development and mine operation jobs with an aggregate value of Rs 1,53,400.21 crore. Some of major contracts awarded were:

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

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

3. BGR Mining & Infra bagged a contract worth Rs 17,289.75 crore from NTPC for development and operation of Kerendari-A coal block in Hazaribagh district of Jharkhand.

4. Gainwell Commosales bagged a contract worth Rs 10,899.72 from Eastern Coalfields for development and operation of Parasea Belbaid reorganisation UG in Paschim Bardhaman (GT) of West Bengal.

In the Manufacturing sector, 297 project contracts valued at Rs 95,835.23 crore were awarded. The sector accounted for 10.85 percent of the total contracts awarded during FY2023.

The Railway Wagon & Equipment sector saw finalisation of 13 new contracts worth Rs 42,865.97 crore. The Indian Railways gave out four contracts worth Rs 41,499.89 crore. Of these, some of the major contracts were:

1. Siemens bagged a major contract worth Rs 26,000 crore to design, manufacture, commission and test the 1,200 locomotives of 9000 horsepower (HP). The locomotives will be assembled in the Indian Railways factory in Dahod, Gujarat.

2. Titagarh Wagons bagged a contract worth Rs 7,838 crore for manufacture and supply of 24,177 wagons consisting of 19,854 BCNA Wagons and 4,323 BOXNHL Wagons.

In the Petroleum Products [Refinery] sector, during FY2023, 131 new contracts worth Rs 9,493.69 crore were awarded. L&T bagged a major contract worth Rs 4,812.07 crore from Indian Oil Corporation (IOCL) for setting up a Residue Hydrocracker Unit (RHCU) part of its Panipat Refinery Expansion Project (P25).

Some major contracts were awarded in the Defence sector to increase the domestic production of defence items.

In the Aircraft sector, a total of nine projects contracts were awarded to execute the job with an aggregate value of Rs 12,909.21 crore. Bharat Electronics bagged a notable contract worth Rs 3,000 for supply of integrated electronic warfare systems for the Indian Army.

A single but noteworthy contract was awarded in the Ships, Boats, etc. sector. Cochin Shipyard bagged a contract worth Rs 9,804.98 crore from Government of India, Ministry of Defence for construction of 6 nos. of Next Generation Missile Vessels (NGMV).

The Arms & Ammunitions sector saw finalisation of one contract worth Rs 8,161 crore. Bharat Dynamics bagged a contract from Ministry of Defence for production and supply of Akash Weapon System to the Indian Army.

In the Radar sector, two new contracts worth Rs 4,791 crore were awarded. Bharat Electronics bagged a major contract worth Rs 3,800 from Ministry of Defence for supply of medium power radar and digital radar warning receiver (RWR) for Indian Air Force.

Projects-related orders in the Electricity sector accounted for 7.32 percent of the total share awarded in FY2023. As many as 297 contracts with orders totalling Rs 64,620.94 crore were awarded.

The Solar-based Power sector saw finalisation of 68 new contracts worth Rs 25,385.49 crore. Tata Power Solar Systems bagged a major contract from SJVN worth Rs 5,500 crore for the development of 1,000 MW (AC) of ground mounted solar project in Bikaner, Rajasthan. Another major contract, in this sector, was secured by Adani Infra (India) worth Rs 4,295.64 crore from NHPC for the development of grid connected Solar PV Project (600 MW Capacity) and transmission line in the state of Gujarat for power evacuation to ISTS Sub-Station alongwith comprehensive O&M for 5 years under Tranche-Ill of CPSU Scheme Phase- II.

The Coal-based Power sector saw finalisation of 173 new contracts worth Rs 21,072.47 crore. Bharat Heavy Electricals (BHEL) bagged a major contract worth Rs 7,406.77 from NTPC for EPC package for Talcher Thermal Power Project Stage-III (2x660 MW), Odisha.

The Hydel-based Power sector witnessed finalisation of 29 contracts with a total value of Rs 14,243.36 crore. Megha Engineering & Infrastructures bagged the major 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.

The Nuclear Power sector saw finalisation of 12 new contracts worth Rs 3,883.74 crore. L&T bagged a contract worth Rs 1,296 crore from Nuclear Power Corporation of India (NPCIL) to build natural draught cooling towers and a cooling water pump house for the Rawatbhata Atomic Power Project -7 & 8.

In the Irrigation sector, as many as 432 contracts with an order value Rs 39,260.23 crore were awarded during FY2023. The Narmada Valley Development Authority gave out 14 contracts worth Rs 13,197.11 crore. Some of the major contracts were:

1. Adani Enterprises in JV with LCC Projects bagged a major contract worth Rs 3,246.15 crore for construction of Shakkar micro irrigation project on turnkey basis including construction of dam on Shakkar river and 95839 ha. pressurized pipes micro irrigation system up to 2.5 ha.

2. L&T bagged a contract worth Rs 2,191.72 crore for construction, operation, and maintenance of Kukshi micro lift irrigation project in the state of Madhya Pradesh.

In the Irrigation sector, Water Resources Department, Madhya Pradesh gave out 50 contracts worth Rs 8,508.12 crore and Water Resources Department of Odisha gave out 31 contracts worth Rs 4,549.43 crore.

Top States

Among the states, Maharashtra was the front-runner by finalising 1,779 project contracts worth Rs 97,800.85 crore during FY2023. Madhya Pradesh grabbed the second position with 933 contracts valued at Rs 80,208.01 crore, followed by Chhattisgarh at third spot with cumulative contract value of Rs 71,377.34 crore. The fourth position was bagged by Gujarat with a contract value of Rs 69,286.54 crore and fifth spot was claimed by Jharkhand with 300 work orders pegged at Rs 49,183.55 crore.

Awarder & Awardees

The National Highways Authority of India (NHAI) topped the list of contract awarders by giving out 285 contracts valued at Rs 1,24,266.21 crore. NHAI was followed by the South Eastern Coalfields with 54 contracts worth Rs 66,614.61 crore, and the Indian Railways with 5 contracts worth Rs 41,499.89 crore. Among the 3,555 awardees who won the 7,773 project contracts, the engineering and construction giant, Larsen & Toubro (L&T) ranked first by securing 99 contracts. It was followed by KEC International with 86 contracts.

Overseas Contracts

During FY2023, Indian companies bagged 80 overseas contracts in sectors like Power Distribution, Shipping Infrastructure, Water, Sewage & Effluent Treatment, Aviation Infrastructure, etc., in countries like Saudi Arabia, Maldives, the USA, Senegal, etc. Rail Vikas Nigam bagged one of the major overseas contracts worth Rs 1,544.6 crore from Government of India, Ministry of External Affairs for the development of UTF (Uthuru Thila Falhu-Island) Harbour.

Another major overseas contract was bagged by Va Tech Wabag in consortium with Toyota Tsusho Corpn., and Eiffage Genie Civil for design, build, operate (DBO) for setting up a 50 MLD Mamelles Sea Water Desalination Project.