The company has bagged eight HAM projects, of which, construction activity for six has already started.
Having completed 12 projects to the tune of Rs 11,500 crore, Sadbhav Engineering's current order book stands at Rs 10,000 crore, 80 per cent of which comprises projects in the highways sector, and the remaining 20 per cent in irrigation and mining. (For the success of any BOT project, you need to complete it within the timeframe and without any extra incremental cost, says Nitin R Patel, Director, Sadbhav Engineering.
In the past two years, the company has bagged eight projects under the hybrid annuity model (HAM); the total sum of these projects amounts to Rs 6,968 crore. To be executed by an SPV, these include the Rs 819-crore, 40.045-km four-laning of the Bhavanagar-Talaja section of NH-8E; the Rs 623-crore, 40.95-km four-laning of the Una to Kodinar section of NH-8E; the Rs 1,008-crore, 170.92-km two/four-laning of BRT Tiger Reserve Boundary to Bengaluru section of NH-209; Rs 738 crore, 43.446 km four-laning of the Rampur-Kathgodam section of NH-87 (New NH No. 9); the Rs 657-crore, 48.78-km four-laning of the Rampur-Kathgodam section of NH-87; the Rs 891 crore, 23.883-km, six-lane greenfield proposed Udaipur bypass; the Rs 1,071-crore, 66.880-km four laning of the Waranga-Mahagaon section of NH-361; and the Rs 1,161-crore, 74.619-km four-laning of the Dangiawas (96.595 km of NH-112) to
Jajiwal (283.500 km of NH-65 Nagpur Road) section.
(Of these, for seven projects, we have achieved financial closure,÷ says Patel, stating that for the eighth project v the Rs 1,100-crore Jodhpur Ring Road v the company has been trying to achieve financial closure for around five months now, and is confident about getting there well before the timeline. (Also, of the seven financially-closed projects, we have received the appointed date for six projects, and construction activity on these projects has already started,The estimated construction timeline for these projects is two to two-and-a-half years; the annuity for all these completed projects is expected to start by FY2021.
Also, of the eight projects, seven are concrete roads and one is bituminous. Hence, there will be a large requirement for cement, followed by steel and other materials like stone chips, etc. With regard to equipment, Patel says, (We have a good fleet but for the execution of these projects, we plan to acquire concrete pavers, concrete batching plants, stone crushers and local concrete transportation units, such as transit mixers, tippers, and whatever is required on a large scale.