Project Contracts

In the first three quarters of FY 2025, 6,449 contracts worth Rs 7,19,664.34 crore were awarded to 4,054 Indian companies. Of these, 58 contracts were for overseas projects. Despite increases in certain sectors, the overall value of contracts decreased by 7.98 percent compared to the same period in FY24. In Q1-Q3/FY24, 6,818 project contracts worth Rs 7,82,104.97 crore were awarded.

Of the total project contracts finalised, 173 mega projects (valued at Rs 1,000 crore or more) totalling Rs 4,34,556.37 crore accounted for 60.38 percent of the total contract value in Q1-Q3/FY25. Key sectors such as Roadways, Coal-Based Power, Power Distribution, and Irrigation contributed 40.8 percent of the total contract value.

The Infrastructure sector remained the leading sector, accounting for 62.58 percent of the total contract value, with 5,335 projects worth Rs 4,50,337.60 crore, including 123 mega contracts totalling Rs 2,39,241.86 crore.

Subsectors within Infrastructure, such as Roadways, Power Distribution, Railways, Water & Sewerage, and Real Estate, witnessed significant activity. The Roadways sector led with 1,574 contracts worth Rs 1,95,777.64 crore (27.2 percent of total contracts). Major contributors included the Maharashtra State Road Development Corporation (Rs 83,106.03 crore) and the Maharashtra State Infrastructure Development Corporation (Rs 17,994.3 crore).

The Power Distribution sector ranked second with 380 contracts worth Rs 80,492.73 crore. The Power Grid Corporation of India (PGCIL) awarded 49 contracts worth Rs 9,964.04 crore.

Railways finalised 224 contracts worth Rs 36,497.71 crore, while the Water & Sewerage sector saw the finalisation of 553 contracts valued at Rs 31,169.13 crore.

Real Estate, where project execution has gathered pace in recent years, saw 1,022 contracts worth Rs 30,976.63 crore, including a Rs 15,000 crore satellite township project awarded to NBCC (India) by the Srinagar Development Authority. The Commercial Complexes sector saw the closure of 109 contracts worth Rs 4,079.54 crore, including a Rs 1,937 crore project by ITD Cementation India for a commercial building in Uttar Pradesh.

The Healthcare saw the awarding of 166 contracts worth Rs 14,663.94 crore. NCC was awarded a Rs 2,462 crore contract to redevelop LTMG Hospital in Mumbai.

The Electricity sector accounted for 17.6 percent of total contracts, finalising 307 contracts worth Rs 1,26,685.51 crore, including 15 mega contracts worth Rs 1,02,845.88 crore. The Coal-Based Power sector saw 78 contracts worth Rs 91,355.91 crore, while Solar Power finalised 166 contracts worth Rs 18,996.42 crore, including a Rs 2,500 crore solar module order secured by Zetwerk Manufacturing Businesses. The Nuclear Power sector saw a resurgence with three contracts worth Rs 12,843.58 crore, including a Rs 12,799.92 crore project for Kaiga-5 and Kaiga-6.

The Manufacturing sector awarded 408 contracts worth Rs 53,855.47 crore, accounting for 7.48 percent of total contracts. Within this sector, eight contracts worth Rs 15,687.72 crore were awarded in the Aircraft sector, including a Rs 13,500 crore deal for Su-30 MKI aircraft by Hindustan Aeronautics Limited. Railway Wagon and Equipment projects finalised 38 contracts worth Rs 9,883.31 crore, including a Rs 3,658 crore metro rolling stock contract awarded to BEML.

While in the Irrigation sector, 316 contracts worth Rs 53,725.06 crore were finalised in the first three quarters of FY25, the Mining sector saw a decline, with 83 contracts worth Rs 35,060.70 crore, down from 102 contracts worth Rs 1,20,601.04 crore in FY24. In the Petroleum and Gas sector, 28 contracts worth Rs 8,329.32 crore were finalised, including a Rs 4,676.32 crore pipeline project secured by Mazagon Dock Shipbuilders.

In the coming months, the awarding of project contracts is expected to gain pace as government spending on social and transport infrastructure increases at a steady pace.

Cover photo: www.freepik.com


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