In Q1/FY19, the data compiled by Projects Today indicated a steady trend in contracts awarded. Over the past three months, a total of 1,225 contracts with an order value totalling Rs 1,11,590.15 crore were awarded.
The 1225 project orders (Domestic & Overseas) were bagged by 679 Indian companies across various sectors. Further, of the 1,225 contracts finalised, 27 were bagged by Indian companies to execute job work overseas.
Two major sub-sectors (Roadways and Irrigation) accounted for 35 percent of the total orders awarded in the Q1/FY19. Over 500 contracts with an aggregate value of over Rs 39,000 crore were awarded in the Roadways and Irrigation sectors.
In terms of contract value, the Roadways sector accounted for 23 percent of the total contract value awarded in Q1/FY19 in the form of 477 contracts worth Rs 25,349 crore. A single contract worth Rs 6,993.99 crore, bagged by Reliance Infrastructure in JV with Astaldi, lifted the overall value in this sector.
Projects-related orders in the Irrigation sector accounted for 12 percent of the sectoral share in Q1/FY19. The sector saw awarding of 34 projects worth Rs 13,717.3 crore.
Larsen & Toubro (L&T) secured the largest contract in this sector. On 28 May 2018, the company bagged a major contract from the Narmada Valley Development Authority for execution of Indira Sagar Project-Parwati Phases-I and -II Micro Lift Irrigation Scheme in Madhya Pradesh on turnkey basis.
A positive trend was also seen in the Real Estate sector. Project contracts awarded jumped from a mere Rs 882.1 crore in April 2018 to Rs 13,704.5 crore in June 2018. Most of this activities happened in June 2018. During the month, orders worth Rs 9,500 crore were finalised.
The announcement of a contractor for redevelopment of Worli BDD Chawls was the major event in June 2018. Capacite Infraprojects, in consortium with Tata Projects & CITIC Construction Company, bagged the contract worth Rs 11,744.26 crore from the Mumbai Housing & Area Development Board for redevelopment of BDD Chawls on CTS Nos 1539 & 1540 at Lower Parel Division at Worli in Mumbai.
Among sub-sectors in the Power, the Coal/Lignite Based Power sector registered lackluster performance in Q1/FY19. Even though, the sector started on a higher note with Rs 4,809.22 crore contracts being awarded in April 2018, a steep fall was seen a month later with mere Rs 131.49 crore contracts being awarded in May 2018. The sector is yet to see revival in projex activities as in June 2018, just two contracts worth Rs 1,000 crore were awarded.
Similar downfall was seen in the Power Distribution sector too, with contracts awarding in this sector declining from Rs 8,212.8 crore in April 2018 to Rs 4,644.46 crore in May 2018. The amount slid sharply to Rs 642.19 crore in June 2018.
On the back of global oil pricing crisis, a major downfall was seen in the Petroleum, Oil & Gas sector. In terms of value the contracts awarded in this sector fell from Rs 1,676.33 crore in April 2018 to a mere Rs 47.78 crore in May 2018.
A total of 1,198 domestic project contracts with an order value totalling Rs 1,11,590.15 crore were awarded across the states in Q1/FY19. Among the states, Madhya Pradesh, Maharashtra and Uttar Pradesh remained the front runners.
In terms of value, Maharashtra topped the chart with 112 contracts worth Rs 25,956 crore being awarded in Q1/FY19. Whereas, Madhya Pradesh saw 138 contracts worth Rs 16,921.4 crore being awarded. The Public Works Department, Madhya Pradesh, awarded majority of the contracts in Q1/FY19.
Indian companies bagged 27 overseas contracts worth Rs 7,960.89 crore in Q1/FY19. These orders were bagged across sectors such as the Railways, Nuclear-based Power, Hydel- based Power, Real Estate, Power Distribution, from countries like Bangladesh, Nepal, Mauritius, Saudi Arabia, South Africa, among others.
Larsen & Toubro (L&T) in JV with Marubeni Corporation bagged the largest overseas contract from Dhaka Mass Transit Company (DMTC) worth Rs 3,191 crore for electrical & mechanical systems package of Dhaka Mass Rapid Transit Development Project (MRT-Line 6).