+
EPC firms see jump in government orders
RAILWAYS & METRO RAIL

EPC firms see jump in government orders

The pandemic resulting in a drab June quarter, the order books are now seeing a rise in orders. The order books of the top Engineering, Procurement, and Construction (EPC) firms are currently experiencing a high tide, with the higher government lavishly expending in the infrastructure of the country.

Major EPC firms like Larsen & Toubro had an order book of nearly Rs 2.99 trillion at the end of September. They have acquired abundant contracts in the railway and transit systems. Dilip Buildcon, a distinguished name in the EPC arena, experienced a growth of 27% in their order book from last year. Other firms like Kalpataru group company, which deals with transmission lines, roadways, and bridges, saw a jump of 46% in their order books.

L&T says its Q2 has been more fruitful than Q1, with a 19% rise in the wins. Orders are essentially being released from the infrastructure expenditure, especially in water, power transmission, metro rails & railways, roads, and expressways.

Fortunately, after a weak span of ordering in the FY19 and FY20, this jump in the order books has compensated for the dry spell. The order books of EPC firms are showcasing about three-times their annual revenue. There is visible growth in the infrastructure projects of railways, mining, and irrigation.

Recovering from the pandemic, fresh investments were seen in the months of July and September, of 67.2% in terms of new projects and 107.1% rise in terms of the quarter-to-quarter basis projects. Collectively, 2,219 new projects involving an investment of Rs 2 .19 trillion were declared in Q2, from that of the 1,372 projects worth Rs 1.05 trillion during Q1.

  • The NHAI awarding has been 50% higher in the first six months of the fiscal year, as compared to the awarding during the same period.
  • NHAI has been the illuminating source of awarding for the EPC firms with them awarding 1,330km of highways in the fiscal first half, which was 1.6 times FY20 and 3.5 times FY19 levels.

ICRA, the credit rating agency, said in a report last month that the Union Government will continue to spend on infrastructure at the current pace since its positive multiplier effect is observed on the economy. There are chances of significant jumps in the orders from the government to the EPC firms.

The pandemic resulting in a drab June quarter, the order books are now seeing a rise in orders. The order books of the top Engineering, Procurement, and Construction (EPC) firms are currently experiencing a high tide, with the higher government lavishly expending in the infrastructure of the country. Major EPC firms like Larsen & Toubro had an order book of nearly Rs 2.99 trillion at the end of September. They have acquired abundant contracts in the railway and transit systems. Dilip Buildcon, a distinguished name in the EPC arena, experienced a growth of 27% in their order book from last year. Other firms like Kalpataru group company, which deals with transmission lines, roadways, and bridges, saw a jump of 46% in their order books.L&T says its Q2 has been more fruitful than Q1, with a 19% rise in the wins. Orders are essentially being released from the infrastructure expenditure, especially in water, power transmission, metro rails & railways, roads, and expressways. Fortunately, after a weak span of ordering in the FY19 and FY20, this jump in the order books has compensated for the dry spell. The order books of EPC firms are showcasing about three-times their annual revenue. There is visible growth in the infrastructure projects of railways, mining, and irrigation. Recovering from the pandemic, fresh investments were seen in the months of July and September, of 67.2% in terms of new projects and 107.1% rise in terms of the quarter-to-quarter basis projects. Collectively, 2,219 new projects involving an investment of Rs 2 .19 trillion were declared in Q2, from that of the 1,372 projects worth Rs 1.05 trillion during Q1. The NHAI awarding has been 50% higher in the first six months of the fiscal year, as compared to the awarding during the same period. NHAI has been the illuminating source of awarding for the EPC firms with them awarding 1,330km of highways in the fiscal first half, which was 1.6 times FY20 and 3.5 times FY19 levels. ICRA, the credit rating agency, said in a report last month that the Union Government will continue to spend on infrastructure at the current pace since its positive multiplier effect is observed on the economy. There are chances of significant jumps in the orders from the government to the EPC firms.

Next Story
Infrastructure Transport

Sumadhura Leases 5 Lakh Sq Ft in Bengaluru

Sumadhura Group, a prominent South Indian real estate developer, has leased over five lakh sq ft of prime commercial space at its flagship Sumadhura Capitol Towers in Whitefield, Bengaluru. The space has been taken up by leading global corporates and renowned retail brands, with the annual leasing revenue expected to reach Rs 500 million.The long-term leases have been signed by key players across sectors such as IT/ITeS, consulting, engineering, and artificial intelligence, reaffirming Capitol Towers’ status as a premium commercial destination in one of Bengaluru’s fastest-growing business..

Next Story
Infrastructure Transport

Konkan Railway Adds Extra Halt for Ro-Ro Car Service During Ganesh Festival

To improve accessibility during the upcoming Ganesh festival, Konkan Railway Corporation (KRCL) has announced an additional halt at Nandgaon Road for its newly introduced Roll-on/Roll-off (Ro-Ro) car transportation service between Kolad (Maharashtra) and Verna (Goa).The Ro-Ro car service, launched to enhance travel convenience along the coastal corridor, complements the long-running Ro-Ro truck service which has been operational since 1999. The added stop is expected to ease vehicular movement for passengers travelling to their hometowns during the festive season.News source: PTI ..

Next Story
Infrastructure Energy

Bihar Approves Rs 940.5 Mn Digital Plan, 2400 MW Project

To enhance access to quality education through digital means, the Cabinet approved the Mukhya Mantri Digital Library Yojana, under which digital library centres will be established in each of the state’s 243 assembly constituencies at an estimated cost of Rs 940.50 million.According to Additional Chief Secretary (Cabinet Secretariat) S. Siddharth, each centre will be set up in existing infrastructure such as panchayat buildings, municipal offices, community halls, and schools with minimum space of 300 sq ft. The libraries will be equipped with 10 computers, electricity, and high-speed intern..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?