Project investment slackened considerably during June, according to ProjectsToday. Six hundred new projects were launched during the month, against 704 in May, 800 in April and 830 in March. Investment in these projects was estimated to be Rs.28,721 crore in June, against Rs.57,642 crore in May and Rs.31,010 crore in April.
Tenders floated for job work and supplies for projects, mirroring speed of project execution, however, kept up the tempo of May, even as relative to April, they showed some decline. Tendering is confined largely to government projects.
June witnessed award of 82 contracts that called for job work of over Rs.27,589 crore, a marked improvement over 68 contracts worth Rs.17,583 crore farmed out in May.
As in April and May, government dominated in project startups in June with 435 startups against 165 by private sector entrepreneurs. This led to preponderance of services and utilities in project launches. Of the 600 projects, the promoters of 183 projects had not firmed up the costs of their projects. Most of these projects were in the real estate sector.
Some of the major developments during the month were as follows:
- The Rs.8,000-crore Lucknow metro rail project was the largest project announced during the month.
- Tamil Nadu Generation and Distribution Corporation announced plans to set up an 800-MW Udangudi coal-based power project (unit-3) near Thiruchendur in Tuticorin district with an investment of Rs.4,000 crore.
- In project tenders, roadways continued to be on top with 1,175 project tenders worth Rs.6,551 crore followed by community services (329 tenders worth Rs.1,753 crore), railways (240 tenders worth Rs.2,955 crore) and irrigation (234 tenders worth Rs.1,818 crore).
- Chenab Valley Power Projects invited global bids for turnkey execution of 4×250 MW Pakal Dul (Drangdhuran) hydroelectric project in Kishtwar district of Jammu & Kashmir.
- Lanco Infratech bagged the largest contract awarded during the month. The Rs.3,294-crore EPC contract from Gujarat Industries Power Company is for offshore and onshore supplies, civil and structuring works, onshore services etc. for 2×300 MW lignite-based thermal power project (phase-III) in Mangrol taluka in Surat district of Gujarat.
- The largest overseas contract in the month was bagged by Tata Power Company from the Government of Vietnam. Valued at Rs.10,240 crore, the contract is for setting up a 2×660 MW Long Phu 2 coal-fired thermal power project in Vietnam.
- Road Construction Department, Jharkhand, awarded Shristi Developers the contract for construction of a high-level bridge over Irga river in the state.
- PGCIL awarded Shyama Power India the contract for tower package for Dehar-Panipat transmission line at Panchkula and LILO of 400kV S/C Dehar-Bhiwani transmission line at Rajpura.