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Project tendering activities witnessed a healthy growth in terms of both number of tenders as well as tender value in the first quarter of FY23. In terms of numbers, tendering activity saw positive growth of 63 percent Y-o-Y in Q1/FY23, while in terms of value 84.40 percent uptick was seen in project tendering. As per the initial findings of Projects Today, strong positive growth of 83.18 percent has been witnessed in contracts finalisation in first three months of FY23 as against Q1/FY22. The orders data indicated that in the first three months of this fiscal, a total of 1,334 project contracts with a total order value of Rs 1,76,515.95 crore were awarded across various sectors. A year earlier (Q1/FY22), 1,691 work-related contracts worth Rs 96,359 crore were awarded. Major sectors — Manufacturing, Mining and Electricity sectors emerged as star performers in Q1/FY23 vis-à-vis Q1/FY22.

A total of 42 mega project contracts (worth Rs 1,000 crore and above) with an aggregate value of Rs 1,09,716.9 crore were awarded in Q1/FY23. These mega contracts accounted for over 62 percent of the total contracts awarded during the period. 

By Sectors

The Services & Utilities (Infrastructure) sector, which comprises the Social and Transport sectors, accounted for 59 percent of the total contracts awarded in Q1/FY23. The sector saw finalisation of 1,070 contracts with an order value worth Rs 1,04,151.3 crore. A year earlier, 1,324 projects related contracts worth Rs 67,476 crore were awarded. 

Within the Infrastructure sector, the Roadways, Water Sewage & Effluent Treatment, Railways, Other Shipping Infrastructure, Community Services and Real Estate were star performers, accounting for the bulk of the project contracts awarded.

In the Roadways sector, as many as 456 contracts valued at Rs 34,487.59 crore were awarded during Q1/FY23. The sector accounted for 19.54 percent of the total contracts awarded in the segment. In this sector, Adani Road Transport awarded two major contracts.

  • H. G. Infra Engineering bagged a contract worth Rs 4,970.99 for the execution of civil and associated works on EPC basis for the development of an access-controlled six-lane expandable to eight-lane greenfield Ganga Expressway [Group-II].
  • ITD Cementation India secured a contract worth Rs 4,850 for the execution of civil and associated works on EPC basis for the development of an access controlled six-lane expandable to eight-lane greenfield Ganga Expressway [Group-IV].

On the other hand, the road building nodal agency, National Highways Authority of India (NHAI) awarded 24 contracts with an aggregate value of Rs 6,423.27 crore. Some of the major contracts include:

  • Ram Kripal Singh Construction bagged a contract worth Rs 1,687.81 crore for construction of four-lane access-controlled greenfield national highway from Balbhadarpur (ch 47.000) to Bela Nawada (ch 89.210) at NH-119D under Bharatmala Pariyojana in the state of Bihar (Amas Darbhanga Package-4 of 42.210 km) on hybrid annuity mode (HAM). 
  • Dilip Buildcon secured a contract worth Rs 886.84 crore for development, maintenance and management of four-laning of Mehgama-Hansdiha section of NH-133 from existing 41.900 km to existing 93.000 km in Jharkhand.

The Water, Sewage & Effluent Treatment sector got a major boost with 28 project contracts valued at Rs 29,197.21 crore being awarded. The sector accounted for 16.54 percent of the total contracts awarded during the period. 

The Municipal Corporation of Greater Mumbai (MCGM) gave out seven notable contracts for sewage treatment plants (STPs) upgradation project under Mumbai Sewage Disposal Project-II worth Rs 26,317.19 crore. The seven STPs at Worli, Dharavi, Bandra, Versova, Malad, Ghatkopar and Bhandup will have a capacity to treat 2,464 million ltr of sewage daily. While STPs at six locations will be upgraded, a new STP will be constructed at Dharavi. 

The Railways sector saw finalisation of 64 new contracts worth Rs 12,184.36 crore during Q1/FY23. L&T bagged a major contract worth Rs 3,141.99 crore from the National High-Speed Rail Corporation (NHSRCL) for design, supply and construction of track & track-related works including testing and commissioning of a double-line high-speed railway between Vadodara and Sabarmati Depot and Workshop in the state of Gujarat.

L&T bagged another major contract worth Rs 963 crore from the Chennai Metro Rail for the construction of elevated viaduct (approximate length of 10 km) including elevated ramp and 10 elevated metro stations of Chennai Metro Rail Project Phase- II. 

In the Water & Sewerage Pipeline & Distribution sector, a total of 198 projects contracts were awarded to execute the job with an aggregate value of Rs 5,139.07 crore. Skyway Infraprojects bagged a major contract worth Rs 432.23 crore from MCGM for reconstruction of Malbar Hill Reservoir at Phirozshah Mehta Garden, Malbar Hill in D ward of Mumbai.

As many as 113 new contracts worth Rs 4,569.02 crore for executing works were awarded in the Other Community Services sector. Jai Ambey Emergency Services (I) bagged a major contract worth Rs 715.71 crore from the Madhya Pradesh Police for upgradation, operation and maintenance for Dial 112/100 Project Phase-II.  

The Other Shipping Infrastructure sector saw finalisation of five new contracts worth Rs 2,117.19 crore. Man Infraconstruction bagged two notable contracts worth Rs 1,339.89 crore from the Bharat Mumbai Container Terminals for reclamation works – construction and material supply for the execution of Phase-II at JNPT, Navi Mumbai.

Projects-related orders in the Electricity sector accounted for 13.12 percent of the total order value issued in Q1/FY23. As many as 50 contracts worth Rs 23,158.74 crore were awarded in the first quarter of this fiscal, as against 77 contracts worth Rs 4,412 crore issued in Q1/FY22.

The Solar-based Power sector saw finalisation of nine new contracts worth Rs 12,160.06 crore. Tata Power Solar Systems secured the largest order worth Rs 5,500 crore from SJVN for the development of 1,000 MW (AC) of ground-mounted solar project in Bikaner, Rajasthan.

Another major contract was secured by Adani Infra (India) worth Rs 4,295.64 crore from NHPC for the development of 600 MW grid connected solar PV project and the related transmission lines in the state of Gujarat for power evacuation to ISTS sub-station under Tranche-III of CPSU Scheme Phase- II.

The Hydel-based Power sector witnessed finalisation of 11 high-value contracts with an aggregate value of Rs 8,126.44 crore. Megha Engineering & Infrastructures bagged a major contract worth Rs 4,427.77 crore from NHPC for turnkey execution of 850 MW Ratle Hydro Electric Project located at Kishtwar district in Jammu & Kashmir.

A total of five new contracts worth Rs 1,542.6 crore were awarded in the Nuclear-based Power sector. GE Steam Power bagged a contract from Bharat Heavy Electricals (BHEL) for supply of three nuclear steam turbines for NPCIL’s Domestic Nuclear Program – Phase-1 being developed at Gorakhpur, Haryana [Units-1 to 4 (GHAVP)] and Kaiga (Kaiga-5 & 6) Karnataka.

The Coal/Lignite-based Power sector saw finalisation of 22 new contracts with an aggregate value of Rs 1,317.95 crore. Techno Electric & Engineering Company bagged an order worth Rs 740.5 crore from Rajasthan Rajya Vidyut Utpadan Nigam (RVUN) for supply and installation of Wet Flue Gas Desulphurisation (FGD) & Auxiliary System, for Kota Super Thermal Power Station (KSTPS), Unit-5 (1×210 MW), 6 & 7 (2×195 MW) in Rajasthan. 

The Manufacturing sector posted 87.7 percent growth in project contract awarding on a Y-o-Y basis. As many as 73 project contracts valued at Rs 21,418.73 crore were awarded in Q1/FY23 vis-à-vis 121 contracts worth Rs 11,411 crore awarded in Q1/FY22. Within the Manufacturing sector, six mega contracts worth Rs 15,882.29 crore were awarded in the Railway Wagon & Equipment sector. Titagarh Wagons bagged a big-ticket contract worth Rs 7,838 crore from the Indian Railways for manufacture and supply of 24,177 wagons consisting of 19,854 BCNA wagons and 4,323 BOXNHL wagons. 

Texmaco Rail & Engineering secured a high-value contract worth Rs 6,450 crore from Indian Railways for supply of 20,067 wagons.

The Aircraft sector saw finalisation of two new contracts worth Rs 2,976.21 crore. Bharat Dynamics bagged a major contract worth Rs 2,971 crore from the Ministry of Defence for supply of ASTRA MK-I Beyond Visual Range (BVR) Air to Air Missile and associates equipment to Indian Air Force & Indian Navy. 

In the Petroleum Products [Refinery] sector, during Q1/FY23 period, 44 new contracts worth Rs 1,509.69 crore were awarded. Thermax secured a contract worth Rs 522 crore from HPCL Rajasthan Refinery for supply of utility boilers and associated systems (Package-9A) for the Rajasthan Refinery Project of HRRL, Barmer.

The auction of coal blocks for commercial mining by the government lifted the overall contracts awarded in the Mining sector in Q1/FY23. As many as 43 contracts with orders totalling Rs 21,348.88 crore were awarded. The sector accounted for 12.09 percent of the total orders value awarded in Q1/FY23. In Q1/FY22, a total of 31 mining contracts worth Rs 5,934 crore were awarded. 

In the Coal sector, a total of 40 project contracts worth Rs 21,129.23 crore. Adani Enterprises bagged a major contract worth Rs 2,117.95 crore for procurement of 1.235 MMT of imported coal for the DVC Power Plants. 

Adani Enterprises bagged another major contract worth Rs 2,085.04 crore from NTPC for procurement of 1.25 MMT of imported coal on FOR destination basis for various NTPC stations — Talcher Kaniha, Farakka, Kahalgaon, Barh, Barauni, & Bongaigaon. In all, Adani Enterprises secured seven contracts worth Rs 10,427.79 crore in the coal sector. 

In the Irrigation sector, 98 contracts with an order value of Rs 6,438.3 crore were awarded during Q1/FY23. Some of the major contracts were:

  • L&T bagged a contract worth Rs 1,355.02 from the Public Health Engineering Department, Rajasthan to execute a parallel carrier system to the Rajiv Gandhi Lined Canal (RGLC Phase-III). 
  • L&T bagged another contract worth Rs 1,313.37 crore from the Water Resources Department, Jharkhand to execute the Masalia Ranishwar Megalift Irrigation Scheme. 
  • RVR Projects bagged a contract worth Rs 1,183.11 crore from the Irrigation & CAD Department, Telangana for the formulation of lift irrigation scheme to Mukthyala Branch Canal from Krishna River near Vellatur (V), Chinthalapalem (M) in Telangana.

Top States 

Among the states, Maharashtra remained the front-runner by finalising 279 project contracts worth Rs 43,149.68 crore during Q1/FY23. Uttar Pradesh ranked second with 117 work-related contracts valued at Rs 15,343.19 crore, followed by Rajasthan with an aggregate contract of Rs 10,448.45 crore. The fourth position was bagged by Gujarat with contracts worth Rs 9,709.91 crore. 

Awarder & Awardees

The Municipal Corporation of Greater Mumbai (MCGM) topped the list of contract awarders by giving out 11 contracts valued at Rs 27,768.16 crore. MCGM was followed by the Indian Railways with three contracts worth Rs 15,499.89 crore, and the NHPC finalised five contracts worth Rs 11,099.69 crore. Among the 827 awardees that won 1,334 project contracts, the construction giant Larsen & Toubro alone secured 21 contracts, followed by KEC International with 17 contracts.

Overseas Contracts 

Indian companies bagged 21 overseas contracts in sectors like Power Distribution, Water, Sewage & Effluent Treatment, Roadways, etc in countries like Senegal, the USA, Nepal, etc.

Va Tech Wabag in consortium with Toyota Tsusho Corporation, and Eiffage Genie Civil bagged a major overseas contract worth Rs 1,218.01 crore from Societe Nationale Des Eaux Du Senegal (Sones) to design, build, operate (DBO) of 50 MLD (expandable to 100 MLD) Mamelles Sea Water Desalination Project.  

Another major overseas contract worth Rs 832.48 crore was bagged by Ashoka Buildcon from the Government of the Cooperative Republic of Guyana for procurement of Phase 1: East Bank-East Coast Road Linkage Project (Ogle to Haags Bosch, Eccles).

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