Domestic Projects contracts awarded increased from Rs 2,74,461 crore in FY17 to Rs 3,22,683.96 crore in FY18 recording a rise of 17.57 percent Y-o-Y (in value terms). In terms of number, project contracts awarded grew from 5,293 in FY17 to 6,480 in FY18.
In all, the overall value of project orders (Domestic & Overseas) went up from Rs 3,18,101.46 crore in FY17 to Rs 3,75,254.88 crore in FY18.
The impressive increase in the domestic project orders seen during FY18 was mainly due to the sharp growth of 139.22 percent recorded in the Manufacturing sector. Also, the number of contracts awarded in this sector almost doubled from FY17. In all, 522 contracts with an order value of Rs 29,914.42 crore were awarded in the FY18.
Projects related orders also grew at an impressive rate of 23.32 percent in the Services & Utilites (Infrastructure) sector. Project orders worth Rs 2,11,020.37 crore were finalised in this sector during FY18 as against orders worth Rs 1,71,120.47 crore awarded in FY17.
Among the other major sectors, Mining sector, due to policy matters, saw lesser number of contracts being awarded in FY18. As a result, the total volume of contracts awarded came down sharply by 37.66 percent to Rs 6,651.75 crore in FY18 from Rs 10,670.42 crore awarded in FY17.
Domestic & Overseas
When compared to the previous financial year, the overall value of orders (Domestic & Overseas) rose to Rs 3,75,254.88 crore in FY18, on the back of Roadways, Telecom Services, Water and Sewerage Pipeline & Distribution and Coal/Lignite-based Power.
A major boost was seen in Telecom Services which jumped over 700 percent in FY18. The contracts awarded in this sector grew Rs 6,282.05 crore in FY18 from a mere Rs 734.38 crore in FY17. A single contract valued at Rs 3,500 crore by the Indian Navy lifted the value in this sector during the period. The order was bagged by Sterlite Technologies to design, build and manage the Indian Navy’s communication network.
Roadways was another major sector which also recorded an upward trend. The Mumbai Metropolitan Region Development Authority (MMRDA) awarded three major contracts with an aggregate value of Rs 14,262 crore for the Mumbai Trans Harbour Link (MTHL) Project.
Another major boost was seen in the Coal/Lignite Based Power sector which doubled from Rs 21,928 crore in FY17 to Rs 42,182.62 crore in FY18. A contract worth Rs 11,700 crore, bagged by Bharat Heavy Electricals (BHEL), lifted the overall value in this sector.
Industry-wise, a downfall was seen in the Railways with contracts awarding in this sector falling from Rs 51,227.94 crore in FY17 to Rs 25,491.31 crore in FY18. The Petrochemicals [Hydrocarbon] sector also registered a falling trend from Rs 4,156.49 crore in FY17 to just Rs 4.93 crore in FY18.
The overall value of overseas project orders rose from Rs 43,640.86 crore in FY17 to Rs 52,570.92 crore in FY18, on the back of Coal/Lignite-based Power, Gas-Based Power & Power Distribution sectors.
BHEL bagged the largest overseas contract in this sector worth Rs 10,000 crore from the Bangladesh-India Friendship Power Company (BIFPCL) for setting up 1,320 MW (2×660 MW) Maitree Super Thermal Power Project in Bangladesh.
During FY18, a total of 6,480 domestic project contracts with an order value totalling Rs 3,22,683.96 crore were awarded in different states. Among the states, Maharashtra, Tamil Nadu, Andhra Pradesh, Jharkhand & Karnataka remained the top five states and accounted for 47.14 percent of the total contracts awarded across the country.
Maharashtra remained the top state with 594 contracts worth Rs 59,908.71 crore in FY18.