As per initial findings by Projects Today, a total of 819 contracts with an order value totalling Rs 53,343 crore were awarded in Q2/FY20. These orders (Domestic & Overseas) were bagged by 574 companies across various sectors. Further, of the 819 finalised contracts, 18 were bagged by Indian companies to execute job work overseas.
The Infrastructure sector is currently the growth driver of Indian economy. In this sector, Roadways and Railways reported encouraging developments. The two sectors accounted for around 25 percent of the total share of contracts awarded in Q2/FY20.
A total of 299 contracts with an aggregate value of Rs 6,219 crore were awarded in the Roadways sector and the Railways sector saw finalisation of 45 new contracts worth Rs 7,605 crore.
In the Railways sector, the Mumbai Metropolitan Region Development Authority (MMRDA) and Rail Vikas Nigam awarded three mega-size contracts valued at an aggregate of Rs 4,170.91 crore. J Kumar Infraprojects secured a contract for design and construction of stations, including two flyovers and underground twin tunnel, one underground station for corridor of Mumbai Metro Line-9, an extension of Line-7 from Dahisar (East) to Mira Bhayandar and Andheri to CSIA of Mumbai Metro Rail Project.
Navayuga Engineering bagged another major contract in the Railways sector worth Rs 909.91 crore from Rail Vikas Nigam for construction of single line BG tunnel T-9 & T-10, including construction of a station yard at Srinagar and Maletha and other ancilliary works in connection with new single broad guage rail link between Rishikesh and Karanprayag (125 km) in the state of Uttarakhand.
In the Roadways sector too, J Kumar Infraprojects bagged two major orders with an aggregate value of Rs 2,221.63 crore. This included construction of Dwarka Expressway from Road under Bridge near Sector-21 Dwarka to Delhi Haryana border Package-2 in Delhi and construction of Coastal Road from Amra Marg to MTHL junction, including airport link at Navi Mumbai in Maharashtra.
During the quarter, the Government of India, Ministry of Defence, saw some major developments. A single contract worth Rs 5,357 crore was awarded to Bharat Electronics for procurement of seven squadrons of Akash Missile System for the Indian Air Force. These systems will be commissioned at Air Force locations spread across pan-India.
The Telecom Services sector saw finalisation of four new contracts worth Rs 3,870.9 crore in Q2/FY20. Himachal Futuristic Communications bagged the largest contract worth Rs 3,329 crore in this sector from Bharat Sanchar Nigam (BSNL) for converged Nationwide IP/MPLS Backbone with 219 x access networks and integrated IMS-based communication solution for Defence Forces under Network for Spectrum (NFS) Programme of the Government of India.
Thirty-two contracts for executing works worth Rs 6,866.74 crore were awarded in the Real Estate sector. The City & Industrial Development Corporation of Maharashtra (CIDCO), one of the major players in this sector, awarded two major contracts:
- Capacite Infraprojects bagged contract for construction of around 21,346 EWS/ LIG type dwelling units with development of commercial area and onsite infrastructure works at various locations in Navi Mumbai (Package- IV).
- Larsen & Toubro (L&T) secured contract for building around 23,432 EWS/LIG type dwelling units with development works at various locations in Navi Mumbai (Package- IV).
In the Airports sector, some developments were reported in the execution of the long delayed Navi Mumbai Airport. In August 2019, Larsen & Toubro (L&T) secured a major engineering, procurement and construction (EPC) contract part of the upcoming Navi Mumbai International Airport. The scope of the contract covers terminal works, including departure and arrival forecourts, airfield development works, 3,700 mtr long south runway, apron systems, taxiway systems, airfield ground lighting and roads, multilevel car parking, utilities and support facilities.
Power sector, which is currently going through a lull period, saw awarding of 46 contracts worth Rs 4,880.34 crore. Of the contracts awarded, the Bharat Heavy Electricals (BHEL) bagged four mega orders worth Rs 3,700 crore from NTPC, Bharatiya Rail Bijlee Co and NTPC-SAIL Power Co.
The company secured Rs 2,500 crore contract from NTPC for supply and installation of Flue Gas Desulphurization (FGD) systems at 2,600 MW Korba STPS in Chhattisgarh and 2,100 MW Ramagundam STPS in Telangana.
The Healthcare sector saw finalisation of 27 new contracts worth Rs 2,113.89 crore across various states. A major development was seen in the state of Assam. The Assam Cancer Care Foundation gave out seven contracts to build and upgrade hospitals at Dibrugarh, Tezpur, Lakhimpur, Barpeta, Jorhat, Darrang and Guwahati to L&T.
Of the 801 domestic project contracts with a total order value of Rs 52,448.38 crore awarded during Q2/FY20, the top five states — Maharashtra, Delhi, Jharkhand, Chhattisgarh and Odisha cornered around 46 percent of the total project orders awarded in Q2/FY20. Maharashtra topped the list with 55 contracts worth Rs 12,066 crore, while Delhi grabbed the second spot with 19 orders worth Rs 4,330 crore.
During Q2/FY20, Indian companies bagged 18 overseas contracts across Roadways, Crude Oil/POL Pipeline, Wind Based Power, Power Distribution, Petroleum Oil & Gases, etc, and industries from countries like Myanmar, Saudi Arabia, Bangladesh, Thailand, and so on.
L&T in consortium with EMAS AMC (a Subsea7 Company) bagged one of the major overseas EPCI contracts from Saudi Aramco. This project consists of 28 offshore jackets in Zuluf, Marjan, Sfaniya & Ribyan offshore fields of Saudi Arabia.
RPP Infra Projects in JV with RK Infra bagged another major contract from Engineering Projects India for construction of a two-lane road from Kaletwa to the India-Myanmar border in the Chin state of Myanmar.