The increase in the number of project contracts awarded indicates willingness of project promoters to execute their dream projects. The project contract award figures for Q2/FY21 (July-September 2020) resonate the above facts. As per the data available till 30 September 2020, in the July-September 2020 period, 1,272 project contracts worth Rs 70,918.7 crore were awarded. This indicated a jump of 93.9 percent when compared with preceding quarter’s figures of 1,050 project contracts worth Rs 36,569.65 crore.
When compared with Q2 figures of FY20 (July-September 2019), this indicated a fall of 13.6 percent. Again, once should keep in mind that the contracts awarded numbers become available with some time lag. Hence, Q2/FY21 figures are subject to upper revisions in coming months.
While making Q-o-Q comparison, we should keep in mind that the first two months of the previous quarter were completely under economic lockdown. The stage-wise unlocking of the economy started from 8 June 2020.
The bounce back in the contract awarding was seen across all major sectors barring the Power sector.
Among the sub-sectors, Roadways saw 478 project contracts worth Rs 13,395 crore finalised. Of this, 19 contracts worth Rs 8,326.5 crore for highway building were finalised by the National Highways Authority of India (NHAI).
Dilip Buildcon bagged four major contracts worth Rs 6,223.58 crore from NHAI. These include:
1. Construction & upgradation of NH-131A from 34.600 km (design ch 6.000) near Narenpur to 79.970 km (design ch 53.000) near Purnea to four-lane standard and from 79.970 km (design ch 53.000) to 82.000 km (design ch 55.000) near Purnea to two-lane with paved shoulder standard in Bihar on hybrid annuity mode (HAM).
2. Six-laning from 42.00 km to 80.00 km of Dodaballapur Bypass to Hoskote section of NH-648 (old NH-207) in Karnataka on HAM under Bharatmala Pariyojana.
3. Four-laning of NH-363 from Repallewada (design 42.000 km/existing 288.510 km) to Telangana/Maharashtra border (design 94.602 km/existing 342.000 km) (design length – 52.602 km) in Telangana under NH (O) on HAM.
4. Dilip Buildcon in joint venture with Hindustan Construction Company (HCC) secured the contract for construction of new link NH-133B from 0.200 km (200.700 km of Sahibganj Bypass) in Jharkhand to 15.885 km (25.240 km of NH-131A) including Ganga Bridge and construction of Manihari Bypass from 0.000 km (25.240 km of NH-131A) to 5.500 km (34.100 km of NH-131A near Narenpur) and widening of NH-131A from 5.500 km (34.100 km of NH-131A) to 6.000 km (34.600 km of NH-131A) in Bihar to four-lane standards on EPC basis.
Another major contract in the sector was secured by KNR Constructions from the Public Works Department, Tamil Nadu, for construction of an elevated highway along Avinashi Road in Coimbatore city from Goldwins to Upplipalayam 147.100 km to 157.200 km of (SHU-52) worth Rs 1,157.42 crore.
The Coal sector, where heavy tendering was seen in recent past, saw finalising of 43 contracts for mine developments entailing a total projex of Rs 12,870.8 crore. BGR Mining & Infra in consortium with DECO bagged a major contract worth Rs 1,856.95 crore at Bina extension OCP in Madhya Pradesh. VPR Mining Infrastructure secured a contract worth Rs 1,512.21 crore at Ananta OCP in Angul district of Odisha.
The Railways awarded 87 project contracts worth Rs 8,796.3 crore. Of this, two mega contracts were bagged by Ircon International (Rs 1,900 crore) and by Dilip Buildcon (Rs 1,335 crore).
Ircon International bagged the contract worth Rs 1,900 crore from the Ministry of Railways for railway electrification works for various routes of 2251 RKM, whereas Dilip Buildcon in JV with HCC secured contract worth Rs 1,334.95 crore from Rail Vikas Nigam (RVNL) for construction of tunnels, bridges, yard and formation works from ch 117.365 to 125.320 under Package-9 in connection with new BG line between Rishikesh-Karanprayag (125 km) in Uttarakhand.
The Irrigation, Real Estate and Community Services were the other sectors to see some high cost contract awarding. Twenty-four new contracts worth Rs 4,844.04 crore were finalised in the Irrigation sector.
Dilip Buildcon in JV with HCC bagged a major contract worth Rs 4,167.70 crore from the Narmada Water Resources, Water Supply & Kalpsar Department for construction of Bhadbhut barrage, flood protection embankments & associated works across River Narmada in Bharuch district of Gujarat.
Seven contracts with an aggregate value of Rs 3,355.4 crore were awarded by NBCC (India) to undertake balance works of Amrapali Group of Companies on EPC basis. Varindera Constructions bagged three contracts worth Rs 1,555.17 crore for balance works of Golf Homes; Leisure Park (Phase-1, Phase-2 and Riverview) and Smart City- Kingswood in Gautam Budh Nagar, Uttar Pradesh.
The Ministry of Defence also awarded a notable contract worth Rs 2,580 crore for supply of six Pinaka Regiments to the regiment of artillery of the Indian Army. These six Pinaka Regiments comprise 114 launchers with automated gun aiming and positioning system (AGAPS), 45 command posts to be procured from Tata Power Company (TPCL) and Larsen & Toubro (L&T), and 330 vehicles to be procured from BEML.
In the Petroleum, Oil & Gas sector, the Oil & Natural Gas Corporation (ONGC) awarded two contracts worth Rs 3,645.58 crore for works of the Armada Sterling Floating Production, Storage and Offloading vessel (FPSO) in Mumbai, Maharashtra. These include:
1. Armada D1 bagged a contract for bareboat charter lease of the Armada Sterling FPSO to be operated in the ONGC D1 field located 200 km off the West Coast of Mumbai.
2. Shapoorji Pallonji Armada Oil & Gas Services bagged the contract for operation and maintenance of the Armada Sterling FPSO.
Among the states, Uttar Pradesh was at the top by finalising 139 project contracts worth Rs 7,786.8 crore. This included Rs 2,051 crore contract awarded by the Uttar Pradesh Metro Rail Corporation and seven real estate contracts worth Rs 3,355.4 crore finalised by NBCC India. Odisha saw closure of 90 contracts worth Rs 7,334.3 crore. The state was followed by Maharashtra where 97 contracts worth Rs 7007.9 crore were finalised during Q2/FY21. Bihar, which has entered the election mode, saw finalisation of 31 contracts worth Rs 5,333.3 crore.
By Awarder & Awardees
NHAI, Mahanadi Coalfields and NBCC (India) were the top three contract awarders in Q2/FY21. Together, they accounted for around one-fourth of the total contracts finalised during the quarter.
On the other hand, HCC, Dilip Buildcon and Larsen & Toubro were the top three beneficiaries. Together these three construction giants cornered 24 contracts worth Rs 15,199 crore. L&T bagged 18 awards worth Rs 3,473 crore in Q1/FY21.