6,818 Project Contracts Awarded in Q1-Q3/FY24

By Team Projects Today

As per the preliminary findings, during the first nine months of the fiscal 2023-24 a total of 6,818 contracts amounting to Rs 7,82,104.97 crore were awarded in India. These contracts, spanning both domestic and overseas projects, were successfully secured by 4,153 companies operating across diverse sectors. These contracts also include 57 overseas contracts bagged by Indian companies for undertaking job works abroad.

By Sectors

During the initial three quarters of FY24 (Q1-Q3/FY24), the Infrastructure (Services & Utilities) sector, comprising the Social and Transport sectors, emerged as a dominant force, commanding a substantial share of 67.50 percent in the total contracts awarded. Notably, this sector saw the culmination of 5,849 contracts, collectively valued at Rs 5,27,921.78 crore.

Signaling a pivotal phase, in Q1-Q3/FY24, 132 mega project contracts, each exceeding Rs 1,000 crore, were awarded, worth Rs 4,68,615.73 crore. This augurs well for the project execution in the country.

Within the Infrastructure sub-sectors like Roadways, Power Distribution, Railways, Coal, Water & Sewerage Pipeline & Distribution sectors saw finalising of contracts worth Rs 4,98,517 crore or 63.74 percent of the total contracts awarded during Q1-Q3/FY24.

In the Roadways sector, in the first three quarters of the current fiscal, the briskness of job work awarding continued and 2,513 contracts amounting to Rs 1,25,102.77 crore were finalised. This sector accounted for 16 percent of the total contracts awarded. Among the contract awardees, the National Highways Authority of India (NHAI) to maintain the tempo of its highway building, finalised 261 contracts worth Rs 33,295.87 crore. Some of the major contracts awarded by NHAI included:

1. IRB Infrastructure Trust: Secured a Rs 4,428 crore contract for tolling, operation, maintenance, and transfer of the four-lane Lalitpur-Sagar-Lakhnadon section on NH-44 in Uttar Pradesh and Madhya Pradesh (TOT Bundle 12).

2. Cube Highways and Infrastructure: Bagged a Rs 2,156 crore contract for tolling, operation, maintenance, and transfer of the four-lane Allahabad Bypass section on NH-2 (New NH-19) in Uttar Pradesh (TOT Bundle 11).

3. Ceigall India in JV with YFC Projects: Awarded a Rs 1,969.39 crore contract for the construction of a four-lane elevated corridor and at-grade improvements from Design Ch 0.000 to 19.870 of the Danapur-Bihta Section.

4. IRB Infrastructure Trust: Secured another major contract valued at Rs 1,683 crore for tolling, operation, maintenance & transfer of Kota Bypass and Cable-stay bridge on NH-76 & Gwalior-Jhansi section in Madhya Pradesh and Uttar Pradesh (TOT Bundle 13).

Among the other developers in this sector, the Mumbai Metropolitan Region Development Authority (MMRDA) emerged as one of the key players by awarding 36 contracts worth Rs 23,528.56 crore. Among these, notable contracts were:

1. Larsen & Toubro (L&T) bagged a contract worth Rs 7,765.09 crore for construction of underground road tunnel connectivity including approaches on design build basis between Orange Gate, Eastern Free Way to Marine drive, Coastal Road at Mumbai.

2. Megha Engineering & Infrastructures has secured two significant contracts for infrastructure development between Thane and Borivali. The first contract, valued at Rs 7,464 crore, is for the construction of a twin-tube road tunnel approach road (Package-I, Ch 0.00 to Ch 5.750 Borivali Side). The second contract, worth Rs 6,937 crore, involves the design and construction of a 6.09 km long twin-tube road tunnel, approaches, and other civil works (Ch. 5.750 to Ch.11.840 - Thane side).

To meet the increased demand for carrying the electricity generated by the fresh capacity additions in the power sector, the contracts for setting up power transmission and distribution works increased impressively in the first three quarters of FY24. As a result, 457 new contracts, with a cumulative value of Rs 1,15,020.9 crore were awarded in the Power Distribution sector. Among the key players, Maharashtra State Electricity Distribution Company (MSEDCL) played a prominent role by awarding 17 mega contracts totalling Rs 28,567.89 crore. The four notable contracts awarded by the MSEDCL were:

1. Adani Group secured two contracts worth Rs 13,888 crore for appointment of advanced metering infrastructure (AMI) service provider for smart prepaid metering in MSEDCL [Bhandup Zone, Kalyan Zone, Konkan Zone, Baramati Zone and Pune Zone] on DBFOOT basis under RDSS scheme.

2. NCC was awarded two contracts worth Rs 6,791 crore for appointment of advanced metering infrastructure (AMI) service provider for smart prepaid metering in MSEDCL [Nasik Zone, Jalgaon Zone, Latur Zone, Nanded Zone and Aurangabad Zone] on DBFOOT basis under RDSS scheme.

3. Genus Power Infrastructures secured two contracts worth Rs 5,368.79 crore for appointment of advanced metering infrastructure (AMI) service provider for smart prepaid metering in MSEDCL [Akola Zone and Amravati Zone] and FMS of 36.27 lakhs smart prepaid meters, system meters including DT Meters on DBFOOT basis under RDSS Scheme.

4. Ashoka Buildcon bagged seven contracts worth Rs 2,285.02 crore for development of distribution infrastructure at the Latur, Nanded, Gadchiroli, Nashik, Washim, Parbhani and Malegaon Circles in the state of Maharashtra under the RDSS scheme.

Capex building activities gained momentum in the Railways sector too. In the first three quarters, 219 new project contracts with a total value of Rs 98,961.18 crore were finalised. Some of the notable contracts awarded were:

1. Bharat Heavy Electricals (BHEL), in collaboration with Titagarh Wagons, secured a noteworthy contract from Indian Railways valued at Rs 24,000 crore. The contract encompasses the manufacturing and maintenance of 80 Vande Bharat Trainsets.

2. L&T bagged a contract from National High Speed Rail Corporation (NHSRCL) from Rs 15,697 crore for design of civil & building works for double line high speed railway (Thane, Virar and Boisar), between Shilphata from MAHSR Km 21.150 to 156.600.

3. BHEL, in a joint venture with Titagarh Rail Systems, secured a substantial contract worth Rs 9,600 crore from the Integral Coach Factory. The contract involves the comprehensive tasks of designing, manufacturing, and commissioning 80 trainsets (Sleeper) on the Vande Bharat platform.

4. Afcons Infrastructure bagged a contract from NHSRCL worth Rs 6,397.27 crore for construction of tunneling works including testing and commissioning for double line high speed railway using (TBM) and (NATM) between Mumbai Underground Station at Bandra-Kurla Complex (MAHSR Km. 0.773) and Shilphata (MAHSR Km. 21.150).

The Water & Sewerage Pipeline & Distribution sector too saw increased number of contracts finalisation, including a couple of mega contracts. In all, the sector saw finalisation of 974 project contracts, collectively valued at Rs 73,714.60 crore. Some of the mega contracts finalised were:

1. Apco Infratech, in joint venture with NCC, secured a noteworthy contract from Uttar Pradesh State Water & Sanitation Mission valued at Rs 1,840.71 crore. The contract entails the review of survey, design, drawings, DPR, and the construction of a multi-group of villages water supply scheme in Agra, marked as Package

2. Megha Engineering & Infrastructures has achieved a significant milestone with the successful securing of a contract from Madhya Pradesh Jal Nigam Maryadit. Valued at Rs 1,719 crore, the contract involves the execution of the Mahi Multi 808 Villages Scheme (MVS) in Ratlam & Dhar, making a substantial contribution to water infrastructure development in the region. Additionally, Laxmi Civil Engineering Services has secured a noteworthy contract worth Rs 1,478.8 crore from Madhya Pradesh Jal Nigam Maryadit. This contract involves the execution of the Ashta Ranipura Multi 723 Villages Scheme (MVS) in Sehore, further advancing water infrastructure initiatives

In the Telecom Services sector BSNL chose the Tata Consultancy to the deployment of 4G networks across India. The Rs 15,000 crore contract was the biggest contract finalised in this sector during the first three quarters of this fiscal. Additionally, Tejas Networks will supply radio access networks (RAN) equipment, marking substantial progress in the telecom infrastructure landscape.

The Other Community Services sector ranked third in terms of number of contracts finalised. In all, 732 new contracts worth Rs 20,022.9 crore were awarded in the first nine months of the fiscal 2023-24. Of this the largest contract worth Rs 749.28 crore was bagged by NBCC (India) from the Ministry of Housing & Urban Affairs. The contract involves project management consulting for the redevelopment and modernization of Government of India Presses at Mayapuri, Rashtrapati Bhawan (Delhi), Nashik, and Kolkata.

In the Real Estate sector, 290 project contracts with a combined value of Rs 16,662.4 crore were bagged by different developers. NBCC (India) secured a substantial contract valued at Rs 2,000 crore from the Kerala State Housing Board. The contract is for the development of a 17.9-acre land parcel situated at Marine Drive in Kochi, Kerala.

Another major contract worth Rs 1,269.16 crore was secured by Larsen & Toubro from Public Works Department, Maharashtra for reconstruction of Manora Amdar Niwas for Maharashtra legislature at Nariman Point Mumbai on EPC basis.

In the Other Shipping Infrastructure sector, the conclusion of 33 new project contracts worth Rs 15,504.08 crore, marked significant developments. Notably, JSW Infrastructure secured a mega contract valued at Rs 4,119 crore from the Karnataka Maritime Board. The contract is for the development of an all-weather deep-water greenfield port at Keni, operating under the Public Private Partnership (PPP) DBFOT (Design, Build, Finance, Operate, Transfer) model.

In the Hospitals sector, 197 project contracts were awarded with a combined value of Rs 11,257.84 crore. Ahluwalia Contracts (India) secured a noteworthy contract worth Rs 616.94 crore from Max Healthcare Institute. The contract pertains to the construction of Max Super Specialty Hospital located at Sector-56, Gurugram, Haryana on EPC basis.

In the Other Storage & Distribution sector, 36 new contracts with a cumulative value of Rs 4,624.28 crore were awarded. Prakash Asphaltings & Toll Highway India successfully secured a notable contract valued at Rs 1,770 crore from National Highways Logistics Management. This contract is for the development, operation, and maintenance of the Multi-Modal Logistics Park (MMLP) Bengaluru, located in Bangalore rural district, Karnataka. The project will be executed through Public-Private Partnership (PPP) on a design-build-finance-operate-and-transfer (DBFOT) basis.

Project orders in the Mining sector accounted for 15.42 percent of the total contract value finalized in the April-December 2023 period. In all, 102 contracts worth Rs 1,20,601.40 crore were finalized in this sector. Bulk of the contract value was finalized in the Coal sector.

In the Coal sector, a total of 76 project contracts were awarded, primarily for the execution of development and mine operation tasks. These contracts collectively added up to Rs 85,717.58 crore. Notable among these contracts were:

1. Power Mech Projects, in consortium with P.C. Patel Infra, successfully secured a super mega contract valued at Rs 30,438 crore. This contract pertains to the development and operation of the Tasra Opencast Project situated in the Jharia Coal fields of Dhanbad.

2. VPR Mining Infrastructure bagged a contract from Mahanadi Coalfields worth Rs 15,410.82 crore for development and operation of Balabhadra OCP as per Part-II.

3. VPR Mining Infrastructure has secured another contract from NTPC, valued at Rs 11,753.11 crore. The contract pertains to the development and operation of the East Pit of Talaipalli Coal Block in Raigarh.

In the Petroleum, Oil, and Gas sector, a total of 20 project contracts were awarded, amounting to an aggregate value of Rs 34,135.37 crore. A notable contract was secured by Engineers India from Oil & Natural Gas Corporation (ONGC). The contract involves the replacement of 03 Nos CSU off-gas compressors and 6 nos. regeneration gas compressors, along with the domestic installation of the CBD vessel at Uran Plant under EPC Reimbursable basis.

During Q1-Q3/FY24, the Manufacturing sector witnessed awarding of 252 project contracts, with a cumulative value of Rs 54,522.44 crore. This accounted for 6.97 percent of the total contracts awarded across various sectors during the same period.v In the Railway Wagon & Equipment sector, 11 new contracts totaling Rs 16,509.81 crore were concluded. Notably, Ramkrishna Forgings, in collaboration with Titagarh Wagons, secured a substantial contract from the Ministry of Railways. This contract, valued at Rs 12,226.5 crore, pertains to the manufacturing and supply of forged wheels under a long-term agreement, aligning with the principles of Aatma Nirbhar Bharat.

Within the Aircraft sector, the execution of five project contracts, cumulatively valued at Rs 10,554.77 crore, was noteworthy. Among these, Bharat Electronics (BEL) secured a substantial contract from Bharat Dynamics. The contract, valued at Rs 3,914 crore, is designated for the production of two regiments of the improved Akash Weapon System (AWS) with upgrades.

In the Aircraft sector, Bharat Heavy Electricals (BHEL) achieved a major milestone by securing a contract worth Rs 3,700 crore from the Ministry of Defence. This contract involves the supply of strategic equipment for the defense sector, emphasizing BHEL's crucial role in contributing to the nation's defense capabilities.

In the Ship & Boat sector, the Q1-Q3/FY24 period witnessed the awarding of three new contracts, totalling Rs 3,446.82 crore. Bharat Electronics Limited (BEL) secured a substantial contract valued at Rs 2,118.57 crore from Cochin Shipyard. This contract involves the supply of various equipment, including sensors, weapon systems, fire control systems, and communication equipment for six Next Generation Missile Vessels (NGMV). These vessels form a class of anti-surface warfare corvettes for the Indian Navy.

During Q1-Q3/FY24, the Electricity sector saw finalisation of 216 contracts were worth Rs 52,027.33 crore.

Of the 68 contracts finalised in the Coal/Lignite-based Power sector the Rs 14,052.88 crore contract bagged by Bharat Heavy Electricals (BHEL) from NTPC was the largest. This contract pertains to the establishment of the 2x800 MW Supercritical Thermal Power Project Stage-II at Lara in Chhattisgarh.

In the Solar-based Power sector, the conclusion of 88 new contracts, totalling Rs 20,073.77 crore, indicated the growing number of new Solar power projects. SJVN Green Energy (SGEL) secured a major contract worth Rs 7,000 crore from Punjab State Power Corporation (PSPCL). Under this agreement, SGEL is entrusted with the procurement of 1200 MW Solar Power. SGEL will develop 1000 MW project anywhere in the country and balance 200 MW in the state of Punjab as per the RFS provisions on Build Own and Operate (BOO) basis.

In the Hydel-based Power sector 25 contracts worth Rs 7,225.92 crore. G R Infraprojects, in joint venture with Patel Engineering, secured a contract worth Rs 3,637.12 crore from NHPC for construction of civil works for head race tunnel including intake, pressure shafts, penstocks, power house & transformer cavern, tail race tunnel, pothead yard, adits for Dibang Multipurpose Project in Arunachal Pradesh on EPC basis.

In the Irrigation sector, a total of 399 contracts valued at Rs 27,032.38 crore were awarded during Q1-Q3/FY24. Among them some of the noteworthy contracts are:

1. Rail Vikas Nigam, in collaboration with SCC Infrastructure, secured a Rs 2,248.95 crore from the Water Resources Department, Rajasthan. The scope of this contract includes the planning, design, and construction of the main canal and associated structures, along with the implementation of an irrigation facility through a piped irrigation network for the Upper High-Level Canal of the Mahi Bajaj Sagar Project in Banswara.

2. Megha Engineering & Infrastructures secured a contract worth Rs 1,599.21 crore from Irrigation & CAD Department, Andhra Pradesh for pip-investigation, preparation of designs & drawings of scour treatment construction of parallel diaphragm wall in ECRF dam Gap-I & II, Andhra Pradesh.

3. GVPR Engineers bagged a contract worth Rs 1,575.45 crore from Water Resources Department, Rajasthan for survey, planning, investigation, design and construction of Pipalkhunt high level canal for transferring water from Mahi to Jakham Dam and PHED WTP at village Harmara ki Rel and development of irrigation facility in 5000 Ha CCA of Pipalkhunt tehsil Pratapgarh through piped carrier and Micro-irrigation system.

In the Irrigation sector, while the Water Resources Department in Rajasthan awarded a total of 18 contracts, amounting to Rs 6,092.49 crore, the Water Resources Department in Madhya Pradesh issued 49 contracts worth Rs 4,767.21 crore.

Top States

Among major states in capex expenditure, the most industrialised state, Maharashtra led the table in terms of both number of contracts finalised and aggregate value of job works. During Q1-Q3/FY24, the state saw awarding of 1,279 contracts, collectively valued at Rs 1,33,144.63 crore and accounted for 17.02 percent of the total contract value awarded.

Madhya Pradesh ranked second with 823 contracts, amounting to Rs 50,760.28 crore, followed by Tamil Nadu in the third spot with a cumulative contract value of Rs 44,214.8 crore. Jharkhand

claimed the fourth position, securing contracts worth Rs 40,280.37 crore, while Chhattisgarh rounded up the top five with 74 work orders pegged at Rs 34,781.56 crore.

The top five states accounted for a little more than one-third of the total contract values finalised in the first three quarters of this fiscal.

Awarder & Awardees

The National Highways Authority of India (NHAI) emerged as the top contract awardee by issuing 261 contracts with a total value of Rs 33,295.87 crore. Following closely, Saudi Aramco with two contracts (Overseas) worth Rs 32,360.64 crore, while the NTPC finalized 56 contracts amounting to Rs 31,927.61 crore. Among the 4,153 awardees who bagged the 6,818 project contracts, Larsen & Toubro (L&T), a construction giant, stood out by securing 65 contracts, followed by KEC International with 45 contracts.

Overseas Contracts

Indian companies bagged 57 overseas contracts in sectors like Petroleum Oil & Gases, Petroleum Products [Refinery], Power Distribution, Other Chemicals, Railways, Water, Sewage & Effluent Treatment etc., in countries like Saudi Arabia, Mongolia, Bangladesh etc. Some major contracts include:

1. L&T secured a notable overseas contract valued at Rs 24,062.75 crore from Saudi Aramco for EPC package for second expansion phase of Jafurah Unconventional Gas Production Project.

2. The second largest overseas contract was also bagged by the L&T from Saudi Aramco. The Rs 8,297.89 crore contract was an EPC package for second expansion phase of Jafurah Unconventional Gas Production Project.

3. Megha Engineering & Infrastructures (MEIL) bagged a notable contract worth Rs 5,389.64 crore for an oil refinery project in Mongolia from Mongol Refinery State Owned LLC. As part of the contract, MEIL will build a diesel hydrotreater unit, hydrocracker unit, and various other units of Mongolia’s first oil refinery.