Contracts worth Rs 2,05,773.49 cr awarded in Q1/FY24
By Team Projects Today
As per the findings of Projects Today, a total of 1,386 project contracts with an order value totalling Rs 2,05,773.49 crore were awarded in Q1/FY24. The contracts were secured by 1,019 companies representing various key sectors. Additionally, among the 1,386 contracts, 17 were won by Indian companies to carry out job work overseas.
Going by the past experience the total number of contracts finalised would undergo upper revisions in the next couple of months. The numbers so far available indicate that project contracts awarded in this quarter would surpass the figures of the preceding quarter. This augurs well from the point of view of project investment.
During Q1/FY24, 27 mega project contracts, each valued at Rs 1,000 crore and above, were awarded. These mega contracts with a combined value of Rs 1,27,047.54 crore, constituted around 61.74 percent of the total contracts awarded during this period.
By Sectors
The Services & Utilities sector, encompassing the Transport as well as the Social infrastructure sectors, accounted for 72.22 percent of the total contract value awarded during the first quarter of FY24. The sector saw the finalization of 1,138 contracts worth Rs 1,48,617.09 crore.
Among the sub-sectors, Railways, Roadways, Telecom Services, Water & Sewerage Pipeline & Distribution, Community Services, Other Shipping Infrastructure and Real Estate sectors were the star performers as they accounted for around 54 percent of the total value of project contracts awarded during Q1/FY24.
The Railways sector witnessed awarding of an impressive 69 project contracts worth Rs 58,775.85 crore. The sharp increase seen in the amount awarded was due to the government’s policy to promote local production of Vande Bharat trains. As a result, the share of Railways increased to around 28.56 percent of the total contract awarded during the quarter. Some of the noteworthy contracts are listed below:
1. Bharat Heavy Electricals (BHEL), in consortium with Titagarh Wagons secured a contract from Indian Railways valued at Rs 24,000 crore. This contract is for manufacturing and maintenance of 80 Vande Bharat Trainsets, along with the upgradation of government manufacturing units, trainsets depots.
The Integral Coach Factory (ICF) of the Indian Railways awarded two contracts for the design, manufacturing, and commissioning of 90 Vande Bharat (Sleeper version) trainsets. Of this, a contract worth Rs 9,600 crore was awarded to BHEL in consortium with Titagarh Wagons for the supply of 80 Vande Bharat (Sleeper version) trainsets, while another contract worth Rs 675 crore was awarded to BEML for the supply of 10 such trainsets to the Indian Railways.
2. Afcons Infrastructure bagged a contract from the National High-Speed Rail Corporation (NHSRCL) worth Rs 6,397.27 crore for the tunnelling works for double line high speed railway using (TBM) and (NATM) between underground station at Bandra-Kurla Complex and Shilphata in Maharashtra for the Bullet train project.
3. Rail Vikas Nigam (RVNL) successfully secured three contracts from Chennai Metro Rail (CMRL) valued at Rs 4,058.18 crore, for the construction of underground stations for Corridor-3 of the CMRL Phase-2 project.
4. Ahluwalia Contracts (India) was awarded a mega EPC contract worth Rs 2,450 crore by the Rail Land Development Authority (RLDA) for the redevelopment of the Chhatrapati Shivaji Maharaj Terminus (CSMT) Station and the construction of associated infrastructure.
In the Roadways sector, 433 new contracts, amounting to a total value of Rs 28,031.57 crore were awarded during Q1/FY24. The high number indicates the emphasis of the government on the development of inter-corridor connections, coastal routes such as the Mumbai Coastal Road Project, as well as the expansion of connectivity roads and expressways. The major contracts awarded in this sector align with these objectives and demonstrate the commitment to enhancing transportation networks.
1. Megha Engineering & Infrastructures (MEIL) bagged a high-value order worth Rs 14,401 crore from the Mumbai Metropolitan Region Development Authority (MMRDA) for the civil construction work of the 11.84 km Thane-Borivali twin tunnel project under two packages with a four-year completion deadline.
2. G R Infraprojects bagged a contract from the National Highways Authority of India (NHAI) worth Rs 1,085.47 crore for four-laning of NH-530B from Kasganj Bypass End to Chandan Nagar (existing km 96.200 of NH-530B/design km. 179.500) section of NH-530B in Uttar Pradesh on hybrid annuity mode (HAM).
3. PNC Infratech secured a contract from the Ministry of Road Transport & Highways (MoRTH) worth Rs 819 crore for the construction of four-lane highway from Singraur Uphar to Baranpur Kadipur lchauli section of NH-73IA with paved shoulders (i/c Ganga Bridge) in Uttar Pradesh on HAM.
The government is considering raising the target for the fiscal year 2023-2024 to over 14,000 km. Of this, the share of NHAI would be around 5,000 km. Riding high on the proliferation of broadband and telecom connectivity in the country, the Telecom Services sector saw the awarding of 11 new contracts with a cumulative value of Rs 19,899 crore. Bharat Sanchar Nigam (BSNL), a major player in the sector, awarded two significant contracts.
1. Tata Consultancy Services (TCS) bagged a mega contract worth Rs 15,000 crore for the deployment of 4G networks across India. As a part of the contract terms, Tejas Networks will supply the radio access network (RAN) equipment.
2. ITI bagged a contract worth Rs 3,889 crore for network expansion under the reservation quota (RQ) Order. The scope of work involves the supply, installation, commissioning, and AMC for a 4G mobile network, which would be deployed across 23,633 sites in the West Zone of the BSNL network.
The Water & Sewerage Pipeline & Distribution sector got a major boost with 204 project contracts valued at Rs 13,587.81 crore being awarded. Afcons Infrastructure secured a major contract from City and Industrial Development Corporation of Maharashtra (CIDCO) worth Rs 786.51 crore. The scope of work involves the construction of an 8.65-km-long treated water tunnel and associated works from the water treatment plant (WTP) at Jite to Sai village (3.35 km) and from Vindhane village to MBR Vahal (5.30 km) in Raigad district of Maharashtra on a design and build (DB) basis.
In the Other Community Services sector, a total of 183 project contracts with a cumulative value of Rs 6,464.89 crore were awarded. Among these contracts, NBCC (India) secured a significant contract worth Rs 749.28 crore from the Ministry of Housing & Urban Affairs. It will provide project management consultancy services related to the redevelopment and modernization of Government of India (GoI) presses located at Mayapuri, Rashtrapati Bhawan (Delhi), Nashik, and Kolkata.
A total of 37 new contracts were awarded in the Real Estate sector, with a combined value of Rs 3,452.98 crore, for executing various construction works. Ahluwalia Contracts (India) has secured a major contract worth Rs 744.68 crore from DLF Home Developers. This contract involves the construction of civil structures, waterproofing works, and rough finishing works for the North Parcel of ‘The Arbour Project’ located at Sector 63, Gurugram in Haryana.
The Other Shipping Infrastructure sector witnessed the finalization of seven new contracts. Man Infraconstruction secured contracts worth Rs 680 crore from the Bharat Mumbai Container Terminals. The contracts were to do pavement work on the reclaimed earth from Bharat Mumbai Container Terminals for the execution of Phase-2 expansion of the Fourth Container Terminal of Jawaharlal Nehru Port (JNPT), Navi Mumbai.
During the first quarter of fiscal year 2024, the Manufacturing sector witnessed the awarding of 51 project contracts with a total value of Rs 27,205.26 crore. This sector accounted for 13.22 percent of the total contracts awarded during that period.
In the Railway Wagon & Equipment sector, two contracts were awarded during the specified period, with a combined value of Rs 12,891.19 crore. One of the notable contracts in this sector was secured by Ramkrishna Forgings in consortium with Titagarh Wagons. The Rs 12,226.5 crore contract is to manufacture and supply forged wheels to Indian Railways under a long-term agreement as part of the ‘Aatma Nirbhar Bharat’ initiative.
The Aircraft sector saw the finalisation of three new contracts, with a cumulative value of Rs 9,805 crore. Bharat Electronics won a major contract worth Rs 3,914 crore from Bharat Dynamics, for the supply of two regiments of the improved Akash Weapon System (AWS), including necessary upgrades.
A single contract worth Rs 960.71 crore was awarded in the Nitrogenous Fertilisers sector. Larsen & Toubro (L&T) secured this contract from Chambal Fertilisers & Chemicals. The contract involves setting up a new plant at Gadepan, district Kota, Rajasthan, for the manufacture of Technical Ammonium Nitrate. The plant will have a capacity to manufacture approximately 2,40,000 tpa of Ammonium Nitrate and 2,10,000 tpa of weak nitric acid.
During the first quarter of the fiscal year 2023-24, the Mining sector accounted for 5.62 percent of the total share of projects-related orders. A total of 33 contracts were awarded in this sector, with a combined value of Rs 11,571.44 crore.
In the capital-intensive Coal sector, a total of 22 contracts were finalized, with a total value of Rs 10,677.77 crore. R K Transport secured a mega contract from Eastern Coalfields, worth Rs 8,498.51 crore. The contract is for the development and operation of the Itapara Open Cast Project (OCP) in West Bengal.The auction-based model by adopted by the Ministry of Coal and the target set for coal production in 2023-24 at 1,012 MT could see a higher number of contracts awarding in the ensuing quarters.
In the Petroleum Oil & Gas sector, ten new contracts were assigned during the period. Engineers India secured a contract from Oil & Natural Gas Corporation (ONGC). The contract involves the replacement of three CSU off-gas compressors and six regeneration gas compressors, domestic installation of CBD vessel at Uran plant in Navi Mumbai under EPC reimbursable basis.
In the Irrigation sector, a large number of contracts were awarded during the first quarter of FY24. A total of 102 contracts were finalized, with a cumulative order value of Rs 10,401.86 crore. Some of the notable contracts awarded in this sector include:
1. Rail Vikas Nigam (RVNL) in JV with SCC Infrastructure bagged a major contract from the Water Resources Department, Rajasthan worth Rs 2,248.95 crore for planning, design and construction of main canal and structures including associated distribution system to provide irrigation facility to 41,903 ha. area through piped irrigation network for upper high-level canal (UHLC) of Mahi Bajaj Sagar Project, Banswara.
Laxmi Civil Engineering Services successfully secured a contract from Maharashtra Krishna Valley Development Corporation (MKVDC). The contract, valued at Rs 1,028.68 crore, pertains to the construction of a pump house and allied works for the Mhaisal Extended Jath Lift Irrigation Scheme project in Miraj, Sangli.
Patel Engineering, in JV with Vijay Kumar Mishra Construction, has been awarded a contract from the Water Resources Department (WRD) of Madhya Pradesh. The contract, valued at Rs 998.75 crore, encompasses various tasks including survey, investigation, designing, and construction of SHER Dams.
A total of 62 contracts were awarded in the Electricity sector, with a combined order value of Rs 7,977.84 crore, which corresponds to 3.88 percent of the total share.
In the Solar-based Power sector, 22 new contracts worth Rs 6,726.6 crore were given out. Gujarat Urja Vikas Nigam (GUVNL), a major player in the sector, awarded three significant contracts, which are:
1. A Rs 3,600 crore contract to Gujarat Industries Power for the development of a 600 MW capacity solar photovoltaic (PV) power project located in Khavda, Gujarat.
2. A Rs 1,200 crore contract to SJVN for setting up a 200 MW grid-connected solar power project. The project is located in Khavda Solar Park, Gujarat and will be executed on a build-own-operate (BOO) basis.
3. A 1,007.6 crore contract to NHPC for a 200 MW capacity solar power project within 600 MW GSECL Solar Park at Khavda (GSECL Stage-1).
Further, in the Coal/Lignite Based Power sector, 21 new contracts were finalized during Q1/FY24. L&T secured a notable contract from NTPC for the make-up water system and ash disposal-cum-AWRS (Ash Water Recovery System) package for Talcher Thermal Power Plant (2x660 MW) in Odisha.
In the Gas Based Power sector, a single contract was awarded during the period. Thermax secured a contract from Reliance Syngas for the mechanical balance of plant (MBoP) works for the captive power plant (CPP) at Reliance's new oil-to-chemical (O2C) facility in the western part of India.
The Wind Based Power sector saw finalisation of 15 new contracts, with SJVN Green Energy securing a notable contract from Solar Energy Corporation of India (SECI) for a 200 MW wind power project on a build, own and operate (BOO) basis. The project will be developed by SJVN Green Energy anywhere in India through an EPC contract.
As the MNRE plans to develop offshore wind energy to meet the government's goal of 500 GW of renewable energy by 2030, the sector is expected to see more contract awarding in the coming months. The aim is to generate 140 GW from wind and 280 GW from solar by utilizing the available resources and building capacities.
Top States
Maharashtra led the states in securing project contracts in the first quarter of FY 2024, with a total value of Rs 39,928.16 crore from 240 contracts. Tamil Nadu followed with Rs 24,754.38 crore from 83 contracts, and West Bengal came third with Rs 10,914.19 crore. Gujarat and Madhya Pradesh ranked fourth and fifth, with contract values of Rs 9,500.01 crore and Rs 7,589.54 crore respectively.
Awarder & Awardees
Indian Railways took the lead as the top contract awarder by finalizing two contracts with a combined value of Rs 24,900 crore. Bharat Sanchar Nigam (BSNL) followed closely with contracts worth Rs 18,889 crore. The Mumbai Metropolitan Region Development Authority (MMRDA) secured the third position with 28 contracts valued at Rs 14,964.12 crore. Among the 1,019 awardees that won a total of 1,386 project contracts, Larsen & Toubro (L&T) stood out with 20 contracts. Following L&T, KEC International secured 12 contracts, solidifying its position in the sector.
Overseas Contracts
Indian companies successfully secured 17 overseas contracts in various sectors including Chemicals, Railway Wagon & Equipment, Real Estate, and Power Distribution. These contracts were awarded in countries such as Japan, Zimbabwe, USA, and others. Some of the contracts includes:
1. L&T secured a contract to design, supply, and construct a 380 kV substation in the central region of the Kingdom of Saudi Arabia (KSA).
2. Kalpataru Projects International won a contract for a residential and institutional building project in Africa.
3. L&T secured another contract for multiple offshore packages in the Middle East. The scope of work comprises engineering, procurement, construction, and installation of new offshore facilities and integration with existing installations.
4. RITES obtained a contract from the National Railways of Zimbabwe for the supply of rolling stock (3000 HP Diesel Electric Locomotives and High Sided Open Wagons).