As per the data mapped by Projects Today, a total of 610 contracts with an order value totalling Rs 46,347.89 crore were awarded for executing works across various sectors in Q1/FY20. These orders (domestic and overseas) were bagged by 424 companies across various sectors.
The government of India, Ministry of Defence, saw some major developments. Accounting for a share of 30 percent of the total orders awarded in Q1/FY20, the ministry awarded two major contracts in this sector. The aggregate value of these contracts was Rs 12,622.64 crore. Garden Reach Shipbuilders & Engineers (GRSE) inked contract for construction and delivery of eight Anti-Submarine Warfare Shallow Water Crafts (ASWSWCs) worth Rs 6,311.32 crore for the Indian Navy. Similarly, the Cochin Shipyard will also build another eight ASWSWCs for the same price.
The 16 vessels are being built in two shipyards simultaneously to shorten the delivery period. The completion period for both the projects is 84 months. The first ship is to be delivered within 42 months from the contract signing date and subsequent balance ships delivery schedule will be two ships per year.
The Irrigation sector grabbed the second spot as 39 project-related contracts worth Rs 7,877.53 crore were awarded for executing works across states in Q1/FY20. The sector accounted for 17 percent of the total contract value awarded in Q1/FY20. A single order worth Rs 4,309 crore, bagged by HES Infra in JV with Max Infra, was a mega contract awarded in this sector.
HES Infra in JV with Max Infra bagged the largest contract from the Water Resources Department, Madhya Pradesh, for construction of Chhindwara irrigation complex project on turnkey basis with completion scheduled in 60 months.
Owing to the model code of conduct for the General Elections which continued for April and May 2019, the overall awarding of contracts remained muted in Q1/FY20. However, the trend is expected to bounce back following the formation a new government.
The Railways sector saw awarding of 33 new contracts worth Rs 3,252.05 crore. The Rail Vikas Nigam awarded two contracts worth Rs 1,108.23 crore, the National Capital Region Transport Corpn awarded two contracts worth Rs 610.55 crore and the Sri Lanka Railways awarded a single contract worth Rs 632.15 crore.
Jindal Steel & Power bagged a major contract worth Rs 665 crore from the Rail Vikas Nigam for supply of 89,042 tonne of UIC 60 kg IRS T-12,880 grade 13 meter rails for RVNL’s upcoming project.
Larsen & Toubro (L&T) bagged 20 contracts during Q1/FY20. Some of the major contracts were:
- SJVN Thermal to set up a two x 660 MW ultra-supercritical power plant in Buxar district, Bihar, on EPC basis.
- The Oil and Natural Gas Corporation (ONGC) for engineering, procurement, construction, installation and commissioning (EPCIC) contract for development of Heera Panna Block of western offshore basin. The project includes two well head platforms, -49 km sub-sea rigid pipelines, 10 riser installation and modification work at the seven existing platforms and Heera Process Complex.
- ONGC for development of Mumbai High South field of western offshore basin. The project includes one water injection process platforms bridge connected to the existing WIS platform, 100-men living quarters, modification and interconnection of all the utilities with the existing WIS, BHS, SLQ platforms.
Three new contracts with order value worth Rs 2,664.69 crore were awarded in the Nuclear Based Power sector during Q1/FY20. Tata Projects secured the largest contract in this sector from the Nuclear Power Corporation of India (NPCIL). The contract worth Rs 2,208.72 crore is for construction of main plant buildings & structures and other associated works (Civil Package- II) of Gorakhpur Haryana Anu Vidyut Pariyojana 1 and 2 in Fatehabad district of Haryana.
Eight contracts with an order value of Rs 1,624.63 crore were awarded in the Water, Sewage & Effluent Treatment sector. With a value of Rs 1,477 crore, Va Tech Wabag bagged the largest contract in this sector from State Mission for Clean Ganga, Uttar Pradesh, towards operation, maintenance and management of the sewage treatment and network infrastructure in the cities of Agra and Ghaziabad for a period of 10 years, expandable for an additional period of five years.
The Coal/Lignite Based Power sector saw finalisation of 32 new contracts worth Rs 2,899.59 crore. With a contract value worth Rs 840 crore the Bharat Heavy Electricals (BHEL) will undertake supply and installation of Flue Gas Desulphurization (FGD) system for control of SOx emissions at the three x 660 MW Nabinagar project of NPGCL in Aurangabad district of Bihar.
A total of 596 domestic project contracts with an order value totalling Rs 45,012.95 crore were awarded across states in Q1/FY20. Among these, Madhya Pradesh, Maharashtra and Haryana remained the front runners.
In terms of value, Madhya Pradesh topped with 33 contracts worth Rs 8,400.49 crore. Of the 33 contracts 18 were awarded by the Water Resources Department, Madhya Pradesh, with an aggregate work order worth Rs 7,784 crore.
Mantena Constructions in JV with Vasishta Constructions bagged one of the major contracts worth Rs 831 crore from the Water Resources Department, Madhya Pradesh, for execution of Maa Ratangarh multipurpose project on turnkey basis.
Maharashtra awarded 90 contracts worth Rs 3,155.67 crore, while Haryana awarded seven contracts worth Rs 3,052.14 crore.
- The Public Works Department, Delhi, abandoned and foreclosed the work order awarded to JKumar Infraprojects for construction of a world-class skill centre, Phase-1 in South Delhi, due to uncertainty involved in getting forest clearance from the Ridge Management Board and also change in the usage of land which is beyond control of the department.
- The Maharashtra Metro Rail Corporation (MahaMetro) terminated a contract given to two companies, Hindustan Construction Company (HCC) and Al Fara’a Infraprojects for constructing Metro stations at Pune and Pimpri-Chinchwad. The discontinuation of work is stated as inconsistency and slow progress of work.
- A major contract worth Rs 1,395 crore was terminated by NMDC awarded to Bharat Heavy Electricals (BHEL). The work included setting up a raw material handling system for its integrated steel plant at Nagarnar in Chhattisgarh.
Indian companies bagged 14 overseas contracts worth Rs 1,334.94 crore in Q1/FY20. These orders were bagged across sectors such as the Railways, Petroleum Oil & Gas, Coal/Lignite Based Power, Other Shipping Infrastructure, etc, from countries like Sri Lanka, Iraq, Bangladesh, Bhutan, among others.
Ircon International bagged the largest overseas contract from Sri Lanka Railways worth Rs 632.15 crore for upgradation of single line BG track from Maho-Omanthai of around 128 km length, including associated infrastructure works.
Next Spaces bagged one of the largest contracts worth Rs 208.84 crore from BHEL for design, engineering, procurement, supply, etc of structural covered sheds for coal and lime stock piles for two x 660 MW Maitree Rampal Project, Bangladesh.