Vol. 08 Issue 13, October 2018

www.projectstoday.com

PROJEX SURVEY 72

Private Projex RoseIn First Two Quarters

Projex worth `35,00,000 crore

[USD 520 Billion] to fructify in India

by 2025

EditorShashikant Hegde

ResearchVP-Research | Mallika JainSr. Manager Research | Dhananjay SakpalManager | Nupoor RaneContent | Nikitha Bhandary

Design & ProductionMahesh Sawant

Sales & MarketingRajesh Jethi

SubscriptionHiren Bawalia

October 2018

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Printed and Published by Shashikant Hegde(Division of Economic Research India Pvt. Ltd.)Projects Today

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INSIDE

As per the ini�al findings of Projects Today, a total of 1,256 contracts with an order value totalling `88,745.47 crore were awarded in Q2/FY19. These orders (domes�c & overseas) were bagged by 625 companies across various sectors

Tender ReviewThe aggregate value of work proposed through project tendering registered a growth of 18.58 percent Q-o-Q in Q2/FY19.

08

Projex Survey 72The 72nd Projex Investment Survey of Projects Today reveals that 2,826 new projects worth `3,07,137.24 crore were announced in the second quarter of the current fiscal (Q2/FY19).

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03

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13 Statistics

Orders & Contract

The 72nd Projex Investment Survey of Projects Today reveals that2,826 new projects worth `3,07,137.24 crore were announcedin the second quarter of the current fiscal (Q2/FY19). Theincrease in the share of the Manufacturing sector in total freshprojex and successive second quarter growth in private projexare major findings of the 72nd Projex Survey.

Fresh projex (projects expenditure) increased by an impressive47.8 percent during Q2/FY19 as against a fall of 29.6 percentobserved in Q1/FY19 on quarter-on-quarter basis. In Q1/FY19,2,698 projects worth `2,07,824 crore were announced. Further,the number of mega projects (investment of `1,000 crore ormore) also increased from 36 in Q1/FY19 to 40 in Q2/FY19.Mega projects reflect confidence of project promoters to commitmore funds in the prevailing investment environment.

Private projex up in first two quarters

The private sector announced 226 more new projects inQ2/FY19 and showed signs of sustaining its increased freshprojex activities in Q2/FY19 too. As a result, fresh projexannounced in Q2/FY19 increased by a healthy 35.3 percenton top of 21.1 percent growth recorded in Q1/FY19 of thecurrent fiscal.

Projex Survey 72

03 October 2018

72nd Survey of Projects Investment in India

Survey Highlights

l Revival seen in the private sector investment in Q1spilled over to Q2

l Central government stepped up its projex spendingl Slowdown seen in state government-sponsored projexl Odisha, the most beneficiary state of fresh investmentl Andhra Pradesh attracted the highest private fresh projexl After several lull quarters, projex revival seen in the

Mining sectorl Mega projects in the Manufacturing sector reflect signs

of revivall Steel, cement, aluminium, automobiles and electronics

attracted private investmentl Distressed thermal power projects face the heat of RBI

guidelinesl Solar project promoters in a confused statel Fresh projex from a couple of states to slow down

further due to elections in December 2018l Revival in construction activities, good monsoon

and increase in rural demands augurs well for projex inIndia during 18-19

Projex Survey 72

04October 2018

In all, the sector saw announcement of fresh investment to thetune of `1,23,062.9 crore in the form of 869 projects. InQ1/FY19 private promoters had announced 643 new projectsentailing a total investment of `90,980.6 crore. Cement, steel,electronics, automobile ancillaries and construction sectorswitnessed increased fresh private investment in Q2/FY19.

The three major South Indian states, Andhra Pradesh,Karnataka and Telangana, were the top three states favouredby private promoters.

In all, 25 mega projects were announced by privatecompanies in Q2/FY19. Of these, `15,000 crore telephoneequipment project of Reliance Industries Jio was the largest.Greenko Solar Energy’s `7,000 crore solar power project inKarnataka; Gulf Petrochem’s `3,600 crore bitumen refineryproject in Gujarat and StreamCloud’s `2,200 crore datacentre in Maharashtra were the other prominent privateprojects announced during this quarter.

The 15.9 percent fall in fresh investment by the state-ownedagencies was fairly compensated by the Central government-owned entities. As a result, the total fresh projex by thegovernment sector increased by a healthy 57.5 percent inQ2/FY19 of the current fiscal. In Q1/FY19, fresh projex bythe government sector had recorded a decline of 47.4percent on Q-o-Q basis.

As against 2,052 government projects worth `1,16,843.4 croreannounced in Q1/FY19, around 1,957 new projects worth`1,84,074.3 crore were announced in Q2/FY19. Aluminium,Petrochemicals, Railways, Roadways and Lignite Mining sectorssaw large-size investment proposals from the governmententities. The Dedicated Freight Corridor Corpn, NationalAluminium Co, NLC India and the National Highways Authorityof India announced mega investment plans during the latestquarter ended September 2018.

Sectoral Growth

The Infrastructure and Manufacturing sectors were the leaders inattracting fresh projex; the Electricity and Irrigation sectors were

the laggards. The Mining sector saw new investment intentionsbeing announced by sate-owned NLC India in Tamil Nadu.

Within the Manufacturing sector the spread of fresh projectswas wider than what was observed in the earlier quarters. Sub-sectors like Petrochemicals, Refinery, Steel, Aluminium, Cement,Electronics and Auto Ancillaries attracted sizeable freshinvestment during Q2/FY19.

A number of thermal power projects promoters are busy insalvaging their already set-up power plants due to rising baddebts and increasing pressure from lenders and the tough stand

Top Five Govt Projects (Q2/FY19)

Promoter Project `Crore Sectors State

Dedicated Freight CorridorCorpn of India

East Coast Corridor 56,749 Railways Multi States

National Aluminium CoAluminium Smelter (Angul)-Expansion

15,000 Aluminium Odisha

NLC India Mine III Neyveli Lignite Mining 10,872 Lignite Tamil Nadu

NHAIIsmailabad-Charkhi Dadri-Narnaul Corridor

7,500 Roadways Haryana

Chhattisgarh Katghora-Dongarhgarh Railway

Katghora-Dongargarh BG RailwayLine

5,950 Railways Chhattisgarh

taken by RBI on the issue of referring such projects to NCLT.Non-availability of regular fuel supply arrangements, defaults inpayments by state Discoms, increased cost of borrowings, hugedebt and unclear policy have not only affected the recentlycommissioned thermal power projects, but have also forcedproject promoters to go slow on projects which are currently inplanning and under-execution stages. According to the latestreports, 34 thermal power projects with an estimated debt of`1.77 lakh crore are lined up to be referred to NCLT.

As against 59 new solar projects worth `33,087.78 croreannounced in Q1/FY19, only 32 new projects entailing a totalinvestment of `11,810.12 crore were announced in the quarterended September 2018. The project promoters of solar projectsare facing two major issues — hike in import duties onequipment and continuous falling tariffs. Reflecting this, newprojex announcements came down in Q2/FY19. Thegovernment should address their concerns quickly so that itsgoal of achieving 20 GW from the Solar sector by 2020 isfulfilled. Non-availability of transmission lines is the other factorwhich has affected both Solar and Wind power projects.

The infrastructure sector, comprising social and transportinfrastructure, accounted for 55.11 percent of fresh projexannounced during Q2/FY19. The 2,239 new projectsannounced in this sector, mostly owned by government entities,are expected to bring in fresh investment to the tune of`1,69,268 crore, indicating a growth of 68.3 percent on Q-o-Q basis. While bulk of the increase in projex can be attributedto the `56,749 crore East Corridor projects announced by theDedicated Freight Corridor Corporation of India, sectors likeHospitals, Water Supply schemes, Roadways, CommercialComplexes and Real Estate received sizeable fresh investmentscompared with the preceding quarter.

The national highways builder, NHAI, announced 26 newhighways in Q2/FY19. Of these, the `7,000 crore Ismailabad(Pehowa)-Charkhi Dadri-Narnaul Corridor Project was thelargest. Post-monsoon, the highway building activities areexpected to gather speed as the government intends to award20,000 km and build 16,420 km new highways during FY19.The pace of road building has increased impressively in recentyears from 12.05 km/day in 2013-14 to around 27 km/day in2017-18. The ministry has set a rather steep goal of building45 km/day during the current fiscal.

Real Estate and Commercial Complexes, where the privatesector dominates, saw impressive increase in fresh projectsinvestment during Q2/FY19. The sectors saw announcement of482 new projects worth `29,749.38 crore in Q2/FY19.Compared with the preceding quarters projex statistics, thisindicated a growth of 27.5 percent.

Odisha on top

Odisha topped the fresh projex table by cornering around 12percent of the total fresh projex announced in Q2/FY19. Twinprojects of National Aluminium worth `20,522 crore and amega cement project of Dalmia Cement helped the state inheading the table. Andhra Pradesh with 166 new projects worth`31,104 crore ranked second. It was followed by Karnataka,Maharashtra and Gujarat. Together, these five states garneredaround 42.8 percent of the total fresh projex emanated inQ2/FY19.

Andhra Pradesh, favourite of Private Promoters

Andhra Pradesh, traditionally one of the favourite investmentdestinations of the private sector, topped the table by bagging78 new projects worth `29,034 crores. Six of the 25 megaprivate projects (investment of `1,000 crore or more) arelocated in this state. Two other southern states – Karnataka(131 projects worth `21,206 crore) and Telangana (116 projectsworth `15,540 crore) secured the second and third ranks.

Gujarat with 119 projects worth `13,759 crore and Odishawith 38 projects worth `9,029 crore completed the list of topfive private-sector-friendly states. The top five states togetheraccounted for nearly three-fourth of the fresh privateinvestment announced in Q2/FY19.

05 October 2018

Projex Survey 72

State Projects `Crore Share (%)

Odisha 186 35,861 11.68

Andhra Pradesh 166 31,104 10.13

Karnataka 270 24,624 8.02

Maharashtra 349 22,875 7.45

Gujarat 205 17,020 5.54

Projex Survey 72

06October 2018

Projex in 2018-19

The continued buoyancy seen in fresh projex announcementsby the private sector in Q2/FY19 augurs well for fresh capacityaddition activities in the country. Good monsoon stabilized GSTregime, revival in rural demand for consumer goods andsustained government spending on highways building andother related infrastructures should see further pick-up inproject investment activities in coming quarters.

Having said that, the falling rupee, rising oil prices and the fearof hike in interest rates are the challenges Indian projectpromoters will have to face in coming months. Further, theupcoming Assembly Elections in major states like Rajasthan,Madhya Pradesh, Chhattisgarh and Telangana will see a fall instate-sponsored fresh projex announcements in coming months.

Projects Stalled in Q2/FY19

Lowest in last 21 quarters

In Q2/FY19, 116 projects were stalled by their promoters. Thisis the lowest number of stalled projects in a quarter in the last21 quarters. In terms of cost, the country lost `69,086.58 croreworth of projex. The previous low of `42,889.15 crore wasseen in Q3/FY16.

Around 77 percent of the total projex shelved were by privatepromoters. In all, 93 projects worth `53,529.6 crore were puton the back burner by their private owners.

Among major sectors, the Manufacturing sector accounted for39.4 percent of the total projex shelved. Followed by theElectricity sector (31.2 percent) and Infrastructure (27.5percent).

Ten each cement and steel projects together valued at `24,857crore accounted for bulk of the projex vanished in theManufacturing sector. This included `12,000 crore integratedsteel project of Uttam Galva Steel, and `2,500 crore cementproject of UltraTech which were the mega projects to be stalled.In the Electricity sector, `12,800 crore Dholera coal-basedpower project of GSEC and `5,813 crore Ponneri coal-basedpower project of North Chennai Power Company were the twolarge projects to be shelved.

Apart from the `10,000 crore Lavasa lake city project, theinfrastructure sector saw 13 Real Estate, seven food parks andtwo SEZs being relegated to the back burner by their respectivepromoters.

Projects Completed in Q2/FY19

A total of 155 projects with an investment of `28,826.47 crorewere completed in Q2/FY19. Generally, information oncompleted projects, especially of medium and small size,comes with some time lag. However, even after considering thelag effect, the total number of projects completed will be one ofthe lowest observed in recent years.

The Services & Utilities (Infrastructure) sector accounted a littleover half (55.63 percent) of the total projex commissionedduring the quarter. In all, 77 projects entailing a totalinvestment of `16,036 crore were completed in this sector.

Within the infrastructure segment, the Roadways sector sawcompletion of 19 projects worth `5,010 crore during Q2/FY19.One of the notable projects completed during the latest quarterwas Kaithal-Rajasthan road upgradation project worth `2,300crore. The project undertaken by a private entity, KaithalTollway, involved four-laning of Kaithal-Rajasthan border

Projects Stalled - between FY14 and FY19

Projex Survey 72

07 October 2018

section of NH-152/65 from 33.250 km (design 0.500 km) to241.580 km (design 166.90 km) in Haryana under NHDPPhase-IV in BOT (Toll) on DBFOT toll basis.

Two major rail projects with an aggregate investment of`3,856.83 crore were executed during Q2/FY19. While theWestern Railway executed doubling of Udhna-Jalgaon withelectrification (length 306.93 km) which began in 2008, theNortheast Frontier Railway concluded developing Agartala-Akhaura railway line (15.054 km) in Tripura, whichcommenced in 2014.

The Manufacturing sector reported completion of 66 projectsentailing an investment of `8,368.58 crore during Q2/FY19.Samsung India's `1,970 crore Noida plant expansion, ShreeCement's `1,100 crore Raipur cement plant and DeepakPhenolics `1,500 crore Phenols & Acetones project at Dahejwere the mega projects completed in this sector.

The Power sector, where projects investment activities haveslowed down considerably in the conventional power sector,saw commissioning of eight projects worth `3,951.03 crore. Ofthese, six were in the renewable energy sector. Among the sixprojects, the noticeable one was 250 MW solar-based powerunit of NTPC. The `2,500 crore solar unit set up at Mandsaurdistrict of Madhya Pradesh was developed by NTPC under theMake in India initiative, using domestically manufactured solarcells and modules.

The state-dominated Irrigation sector saw commissioning ofthree projects worth `395.89 crore in Q2/FY19. TheIrrigation and CAD Department, Telangana, completed theSadarmatt barrage scheme across Godavari River ofSriramasagar project to store 1.58 TMC of water to irrigateSadarmatt anicut and Ganganala project in Adilabad districtof Telangana.

Top Five Completed Projects (Q2/FY19)

Company ProjectCost

(`Crore)Industry State

Western RailwayUdhna-Jalgaon DL RailwayLine

2,884 Railways Gujarat, Maharashtra

NTPC Solar Power (Mandsaur) 2,500 Solar based Power Madhya Pradesh

Kaithal Tollway Road Upgradation (Kaithal-Rajasthan)

2,300 Roadways Haryana

Samsung IndiaElectronics

Mobile Phones (Noida) -Expansion

1,970Telephone, Intercom,PABX, etc

Uttar Pradesh

K Raheja UniversalResidential Complex(Malad) [Raheja Exotica]

1,862 Real Estate Maharashtra

The­ aggregate­ value­ of­ work­ proposed­ through­ projecttendering­registered­a­growth­of­18.58­percent­Q-o-Q­inQ2/FY19.­ In­all,­8,580­project­ tenders­worth­`1,91,985

crore­ were­ published­ in­ Q2/FY19­ as­ against­ 8,352­ tendersworth­`1,62,338­crore­floated­in­Q1/FY19.

The­uptick­in­the­tendering­process­was­mainly­due­to­increasedtendering­ activities­ by­ state­ government-owned­ entities.Tendering­by­these­entities­registered­a­growth­of­39.66­percentin­Q2/FY19­when­compared­with­the­preceding­quarter.

Although­the­government­sector­accounts­for­nearly­99­percentof­the­project­tendering­activities,­bulk­of­the­tendering­is­doneby­ state­ government-owned­ agencies.­ Accounting­ for­ 78.53percent,­ the­ 6,935­ tenders­ worth­ `1,50,582­ crore­ issued­ bystate­ governments­ during­ Q2/FY19­ compared­ well­ withQ1/FY19­figures­of­6,284­tenders­worth­`1,07,814­crore.

As­ against­ this,­ a­ sharp­ fall­ was­ seen­ in­ tendering­ by­ theCentral­ government.­ The­ share­ of­ total­ project­ tender­ valuesfloated­ by­ the­ Central­ government­ agencies­ came­ down­ to21.46­percent­in­Q2/FY19­from­33.32­percent­in­Q1/FY19.­Inall,­ 1,543­ project­ tenders­ with­ a­ contract­ value­ of­ `41,157crore­were­issued­by­the­Central­government­during­the­latestquarter.

08October 2018

Tender Review Projex Survey 72

Step-up in tendering by State Governments

Tender Review Projex Survey 72

09 October 2018

Major­sector-wise,­Services­&­Utilities­(Infrastructure)­topped­thetable­by­accounting­for­87.14­percent­of­the­total­project­tendervalue­floated­in­Q2/FY19.­The­sector­saw­a­positive­growth­of21.19­ percent­ Q-o-Q­ with­ 7,598­ tenders­ worth­ `1,67,304crore­being­floated­in­Q2/FY19.­In­the­previous­quarter,­7,330tenders­with­work­order­worth­`1,38,042­crore­were­issued.

Within­ the­ Services­ &­ Utilities­ sector,­ Roadways,­ CommunityServices­ and­Water­ Pipelines­&­Distribution­were­ the­ leadingsectors­in­issuing­tenders.­Roadways­with­2,894­project­tenders,valued­at­`62,547­crore,­accounted­for­around­one-third­of­thetotal­value­of­the­tenders­issued­in­Q2/FY19.

Among­the­tender­issuers,­the­Public­Work­Departments­of­stateand­ Central­ government­ issued­ the­ highest­ number­ ofroadways­ tenders­ in­ the­ latest­quarter.­ It­was­ followed­by­ theNational­ Highways­ Authority­ of­ India­ (NHAI)­ which­ floatedtenders­(231)­worth­`13,788­crore­in­Q2/FY19.

One­of­the­most­notable­tenders­of­the­month­was­issued­by­theMaharashtra­State­Road­Development­Corporation­(MSRDCL)for­ development­ of­ Samruddhi­ Corridor.­ The­ next­ threepackages­ of­ tenders­ (Packages­ 14,­ 15,­ 16)­ were­ floated­ forworks­under­the­expressway­project.­A­total­of­78.1­km­will­bedeveloped­under­these­three­packages.­The­aggregate­value­ofthe­tenders­was­`6,531.8­crore.­

The­ Nagpur-Mumbai­ Super­ Communication­ Expressway(Maharashtra­Samruddhi­Mahamarg)­involves­developing­710km­ communication­ super­ expressway­ on­ EPC­ basis,­ linkingMumbai­ with­ Nagpur­ via­ the­ backward­ regions­ ofMaharashtra.­ The­ entire­ project­ will­ cost­ around­ `30,000crore.­Earlier,­tenders­were­floated­for­13­packages­under­thisproject.­Following­which,­13­lowest­(L1)­bidders­were­declaredout­of­18­eligible­contenders.­

Community­ Services,­ comprising­ sub-sectors­ like­ Hospitals,Tourism­ &­ Recreation,­ Water­ Pipelines­ and­ Distribution,registered­a­strong­growth­of­169­percent­Q-o-Q­in­Q2/FY19.Under­ this­ segment­ work­ orders­ worth­ `32,587­ crore­ wereproposed­ through­ tendering­ in­Q2/FY19­as­against­`12,113crore­floated­in­Q1/FY19.

The­ AP­ Capital­ Region­ Development­ Authority­ floated­ sixseparate­ tenders­ with­ an­ aggregate­ value­ worth­ `8,250.32crore­ for­works­ in­Amaravati­Capital­City.­The­scope­of­workincludes­development­of­roads,­drains,­water­supply,­sewerage,STP,­etc­for­land­pooling­schemes­in­Zones­4,­5,­9,­9A,­12,­12Aon­EPC­basis­in­Amravati­Capital­City­in­Guntur­district.­

Project­ tendering­ activities­ in­ the­ Railways,­ one­ of­ the­majortendering­sectors,­nearly­halved­ in­Q2/FY19.­As­against­824tenders­worth­`21,163.87­crore­issued­in­Q1/FY19,­only­469tenders­ worth­ `10,524.15­ crore­ were­ issued­ in­ Q2/FY19.Traditionally,­ fresh­ tenders­ on­ large­ scale­ are­ issued­ by­ theRailways­in­the­post-budget­quarter.

A­notable­project­tender­in­this­sector­was­floated­by­Rail­VikasNigam­(RVNL)­for­construction­of­roadbed,­bridges,­supply­ofballast,­ installation­ of­ track,­ electrical,­ signalling­ &telecommunication­ works­ for­ execution­ of­ third­ line­ betweenJimidipeta­(incl)-Bobili­(incl)­in­Waltair­division­of­the­East­CoastRailway.­The­estimated­contract­value­was­`429.14­crore.

A­ 26.7­ percent­ rise­ was­ seen­ in­ tendering­ in­ the­ Irrigationsector­ in­Q2/FY19.­A­ total­of­507­tenders­with­an­aggregatevalue­of­`18,813­crore­were­ issued­ in­Q2/FY19­against­559tenders­worth­`14,849.41­crore­in­the­preceding­quarter.

The­ Narmada­ Water­ Resources,­ Water­ Supply­ &­ KalpsarDepartment­issued­one­of­the­notable­tenders­in­this­sector.­Thescope­ of­ work­ included­ construction­ of­ 1.637­ km­ longBhadbhut­ barrage­ comprising­ river­ diversion­ work­ underPhase-1­development­programme­in­Gujarat.­The­cost­of­workwas­`2,376.28­crore.

On­reflection,­the­uncertainties­faced­by­a­number­of­thermalpower­projects,­tendering­activities­nearly­halved­in­Q2/FY19.In­all,­295­project­tenders­valued­at­`3,666­crore­were­floatedin­the­latest­quarter.

One­of­the­most­notable­tenders­was­floated­by­THDC­India­forsteam­ generator­ and­ associated­ packages,­ including­ sitelevelling­for­Khurja­Super­Thermal­Power­Project­(STPP)­(2×660MW)­ located­ at­ Dushahara­ village­ in­ Khurja­ taluka­ ofBulandshahr­district­ of­Uttar­ Pradesh.­ The­estimated­ value­ofthe­contract­is­`3,555.55­crore.

Among­ the­ states­ –­ Andhra­ Pradesh,­ Maharashtra,­ MadhyaPradesh,­ Bihar,­ Odisha,­ Rajasthan,­ Jharkhand,­ Gujarat,Telangana,­ Tamil­ Nadu­ –­ accounted­ for­ 59.5­ percent­ of­ thetotal­value­of­the­project­tenders­announced­across­the­countryin­Q2/FY19.­While­Maharashtra­floated­the­highest­number­oftenders­ (1,468)­ worth­ `23,211­ crore,­ Andhra­ Pradeshaccounted­ for­ the­ highest­ aggregate­ value­ of­ tenders­ worth`27,390­crore­during­the­Q2/FY19.

As­per­the­initial­findings­of­Projects­Today,­a­total­of­1,256contracts­with­an­order­value­totalling­`88,745.47­crorewere­ awarded­ in­ Q2/FY19.­ These­ orders­ (domestic­ &

overseas)­ were­ bagged­ by­ 625­ companies­ across­ varioussectors.­

Further,­ of­ the­1,256­ finalised­ contracts,­34­were­bagged­byIndian­ companies­ to­ execute­ job­ work­ overseas.­ In­ thepreceding­ quarter,­ 1,603­ contracts­ with­ an­ order­ worth`1,16,201.72­crore­were­awarded­across­major­sectors.­

The­ number­ of­ orders­ firmed­ up­ in­Q2/FY19­ is­ expected­ toincrease­ and­ cross­ the­ preceding­ quarters­ statistics­ asinformation­ on­ contracts­ awarded­ by­ non-listed­ companiesbecomes­ available­ with­ a­ time­ lag­ of­ around­ two­ to­ threemonths.

Services­ &­ Utilities­ (comprising­ social­ and­ transport­ sectors)topped­ the­ table­ by­ accounting­ for­ 68­ percent­ of­ the­ totalproject­contracts­firmed­up­in­Q2/FY19.­The­sector­saw­1,031contracts­ with­ an­ order­ value­ worth­ `60,445­ crore­ beingawarded­in­the­quarter.­

While­the­Electricity­sector­took­the­second­spot­with­103­workorders­ worth­ `15,442.65­ crore,­ the­ Irrigation­ sector­ rankedthird­with­59­contracts­worth­`7,159­crore­during­Q2/FY19.

10October 2018

Orders & Contracts Projex Survey 72

Q2/FY19 sees awarding of `88,745 cr work orders

Orders & Contracts Projex Survey 72

11 October 2018

Within­the­Services­&­Utilites­(Infrastructure)­sector,­Roadways,Airways­(Aviation­Infrastructure),­Community­Services,­Railwaysand­ Telecommunication­ were­ star­ performers­ accounting­ forbulk­of­the­project­contracts­awarded.

Roadways­ remained­ the­ front-runner­ during­ Q2/FY19.­ Thesector­saw­finalisation­of­636­new­contracts­worth­`23,374.69crore.­ Two­ of­ these­ were­ of­ mega­ size­ and­ awarded­ by­ theMaharashtra­ State­ Road­ Development­ Corporation­ (MSRDC)and­the­National­Highways­Authority­of­India­(NHAI).

MSRDC,­ the­ promoter­ of­ Nagpur-Mumbai­ SuperCommunication­ Expressway­ (Maharashtra­ SamruddhiMahamarg­Project),­awarded­five­of­the­12­packages­identifiedfor­ setting­ up­ the­ expressway.­ The­ aggregate­ value­ of­ thesepackages­was­`9,319.52­crore.­

NHAI­ finalised­ the­ bidder­ for­ its­ four-laning­ ofSattanathapuram­ to­Nagapattinam­ section­of­NH-332­ in­ thestate­of­Tamil­Nadu­under­NHDP­Phase-IV­on­Hybrid­AnnuityMode­ (HAM).­ Welspun­ Enterprises­ bagged­ this­ order­ worth`2,004.51­crore.

In­ terms­ of­ contract­ value,­ Telecom­ ranked­ second­ andaccounted­ for­ around­ 10­ percent­ of­ the­ total­ contract­ valueawarded­in­Q2/FY19.­In­all,­10­contracts­valued­at­`9,503.33were­awarded­in­this­sector.­

Of­these,­a­notable­one­was­secured­by­Tata­Projects­for­BharatNet­Phase-II­Project­in­the­state­of­Chhattisgarh.­The­companybagged­ the­ largest­ contract­ worth­ `3,057­ crore­ from­ theChhattisgarh­Infotech­&­Biotech­Promotion­Society.­As­per­thescope­of­the­contract,­Tata­Projects­will­lay­48­core­Optical­FibreCable­(OFC)­Network­across­the­state­covering­32,466­km.

ITI­ in­ consortium­ with­ Aksentt­ Tech­ Services­ and­ Karvy­ DataManagement­Services­bagged­another­notable­contract­worth`2,658­ crore­ from­ the­ Maharashtra­ Information­ TechnologyCorporation.­ The­ company­ has­ been­ selected­ as­ the­ ProjectImplementation­ Agency­ (PIA)­ for­ Packages­ A­ and­ C­ ofMahaNet-I­(BharatNet-II)­project­in­Maharashtra.­

The­Irrigation­sector­ranked­third­in­contract­activities.­In­all,­59tenders­worth­`7,159­crore­were­finalised­in­Q2/FY19.­Of­the59­ contracts,­ 49­ were­ finalised­ by­ the­ Water­ ResourcesDepartment,­Madhya­ Pradesh.­ The­ aggregate­ value­ of­ these49­contracts­was­`6,692­crore.­

One­of­ the­major­ contracts­awarded­by­ the­Water­ResourcesDepartment,­ Madhya­ Pradesh,­ was­ for­ the­ construction­ ofLower­Orr­irrigation­system­in­the­state.­The­contract­valued­at`1,650­crore­was­bagged­by­Mantena­Constructions­in­JV­withMax­Infra.­

A­total­of­31­contracts­worth­`6,618.37­crore­were­awarded­inthe­Airways­ (Aviation­ Infrastructure)­ sector.­Nearly­ half­ of­ thetotal­ value­was­accounted­by­a­ single­ contract­worth­`3,028crore,­bagged­by­Larsen­&­Toubro­(L&T).­The­company­securedthe­ contract­ from­ GMR­ Hyderabad­ International­ Airport­ forexpansion­ of­ the­ terminal­ building­ and­ airside­ infrastructureworks­ at­ the­ Rajiv­ Gandhi­ International­ Airport,­ Hyderabad,Telangana,­on­EPC­basis.­

Railways­saw­issuing­47­work­orders­with­an­aggregate­valueof­`5,601.62­crore­in­Q2/FY19.­Essel­Infraprojects­bagged­thelargest­contract­in­this­sector­worth­`1,706­crore­from­the­EastCoast­ Railway.­ The­ work­ involves­ construction­ of­ third­ linebetween­ Bhadrak-Byree­ (67.4­ km)­ excluding­ Jakhapura­ toHaridaspur­on­Howrah-Chennai­Main­Line­on­Eastern­FreightCorridor.­This­is­the­first­private­project­in­Railways­under­PPPannuity­mode.­

In­September­2018,­three­companies­were­declared­the­lowestbidders­(L1)­for­the­following­projects:

l Dilip­Buildcon­(DBL)­emerged­L1­bidder­for­Phase-I­of­IndoreMetro­Rail­Project­in­Madhya­Pradesh.

l DBL­ was­ declared­ L1­ bidder­ for­ Navnera­ Barrage­ (Dam)under­ Phase­ 1/A­ in­ Rajasthan­ by­ the­ Water­ ResourceDepartment,­Kota.

l Ashoka­ Buildcon­ in­ a­ joint­ venture­ (JV)­ with­ Story­ TechServices­ emerged­ L1­ bidder­ for­ rail­ works­ in­ the­ states­ ofBihar­and­Jharkhand­under­two­separate­packages.

l Gayatri­Projects­(GPL)­was­declared­L1­bidder­for­three­roadprojects­by­ the­Bihar­ State­ Road­Development­Corporation(BSRDC).­

Contract­Terminated

During­ Q2/FY19­ a­ major­ contract­ was­ terminated­ by­ theMumbai­ Metropolitan­ Region­ Development­ Authority(MMRDA).­The­contract­worth­`393­crore­was­awarded­to­Niraj

Cement­Structural­ in­consortium­with­GGYHBCL­and­MPKHS.The­ scope­ of­ work­ included­ part­ design­ and­ construction­ ofelevated­ viaduct­ and­ five­ elevated­ stations­ viz,­ DiamondGarden,­Shivaji­Chowk,­BSNL­Metro,­Mankhurd­and­Mandale(excluding­architectural­finishing­and­pre-engineered­steel­roofstructure­of­stations)­of­line­2B­corridor­(DN­Nagar­to­Mandale)of­ Mumbai­ Metro­ Rail­ Project­ (Package-7).­ The­ reasons­ forcancellation­have­not­been­made­public.

Overseas­Contracts

In­Q2/FY19,­Indian­companies­bagged­34­overseas­contractstotalling­`5,583.47­crore.­Patel­Engineering­bagged­the­largestoverseas­ contract­ worth­ `1,125.87­ crore.­ The­ contract­ wassecured­ from­SJVN­Arun-3­Power­Development­Company­ forArun-3­Hydroelectric­Project­located­in­Nepal.

Consolidated­Construction­Consortium­(CCCL)­in­JV­with­GPTInfraprojects­and­SEL­bagged­another­major­overseas­contractworth­`245.33­crore­for­construction­of­rail­line­connection­withconstruction­of­Ruppur­Nuclear­Power­Plant­and­other­ancillaryworks­in­Bangladesh.

Statewise

During­Q2/FY19,­a­ total­of­1,222­domestic­project­ contractswith­an­order­value­ totalling­`83,162­crore­were­awarded­ indifferent­ states.­ Among­ the­ states,­ Madhya­ Pradesh,Maharashtra,­West­Bengal,­Odisha­and­Tamil­Nadu­occupiedthe­top­five­positions­respectively.

Madhya­Pradesh­topped­with­243­contracts­worth­`15,812.58crore­in­Q2/FY19,­while­Maharashtra­grabbed­the­second­spotwith­228­orders­worth­`19,379.73­crore.

Orders & Contracts Projex Survey 72

12October 2018

Statistics Projex Survey 72

13 October 2018

Sectors

September-17 September-18

No. of Invst. Share in No. of Invst. Share in

Projects (`Crore) Total (%) Projects (`Crore) Total (%)

Manufacturing 3,134 20,21,478 16.57 3,754 21,90,289 16.58

Food & Agro Products 514 52,472 0.43 568 53,271 0.40

Textiles 170 25,462 0.21 229 35,255 0.27

Basic Chemicals 994 7,30,318 5.99 1,095 7,27,142 5.50

Fertilisers 118 1,54,748 1.27 120 1,56,172 1.18

Paints & Dyestuff 37 7,743 0.06 46 7,577 0.06

Drugs & Pharmaceuticals 274 17,208 0.14 291 19,228 0.15

Bio-technology 3 439 0.00 3 439 0.00

Petrochemicals [Hydrocarbon] 16 1,20,065 0.98 18 1,12,465 0.85

Petroleum Products [Refinery] 68 3,81,003 3.12 64 3,71,808 2.81

Plastic & Plastic Products 147 9,311 0.08 172 9,700 0.07

Rubber & Rubber Products 22 12,429 0.10 37 24,698 0.19

Paper & Paper Products 61 29,052 0.24 81 25,455 0.19

Non Metallic Mineral Products 264 1,62,713 1.33 289 1,69,338 1.28

Cement & Asbestos 230 1,58,266 1.30 246 1,65,151 1.25

Basic Metals 421 6,77,637 5.55 514 7,38,922 5.59

Iron & Steel 381 5,60,037 4.59 458 6,11,525 4.63

Non Ferrous Metals 40 1,17,600 0.96 56 1,27,397 0.96

Aluminium 23 98,572 0.81 35 1,10,560 0.84

Copper, Zinc, etc 14 16,254 0.13 14 14,047 0.11

Machinery 285 1,96,042 1.61 379 2,28,359 1.73

Non Electrical Machinery 73 10,661 0.09 102 11,892 0.09

Electrical Machinery 81 16,870 0.14 103 25,060 0.19

Electronics 131 1,68,512 1.38 174 1,91,407 1.45

Consumer Electronics 24 1,901 0.02 27 2,392 0.02

Transport Equipment 199 1,14,970 0.94 293 1,61,079 1.22

Automobiles 114 1,00,700 0.83 141 1,39,668 1.06

Automobile Ancillaries 85 14,270 0.12 152 21,411 0.16

Miscellaneous Mfg 57 11,071 0.09 96 17,065 0.13

Mining 1,039 4,26,430 3.49 1,023 5,06,794 3.84

Mineral Fuels 561 3,44,486 2.82 535 4,21,092 3.19

Coal, Lignite 344 1,80,126 1.48 331 2,48,789 1.88

Petroleum Oil & Gases 198 1,43,003 1.17 186 1,50,696 1.14

Non Metallic Minerals 271 21,947 0.18 289 22,936 0.17

Metallic Ore, Slag, etc. 207 59,997 0.49 199 62,765 0.48

Outstanding Projects Investment: By Sectors (2017 & 2018)

Statistics

14October 2018

Projex Survey 72

Sectors

September-17 September-18

No. of Invst. Share in No. of Invst. Share in

Projects (`Crore) Total (%) Projects (`Crore) Total (%)

Electricity & Non Conventional Energy 2,379 31,49,749 25.81 2,256 30,88,515 23.38

Electricity 1,449 29,17,665 23.91 1,267 27,99,478 21.19

Hydel Based Power 955 5,72,839 4.69 824 5,83,710 4.42

Thermal Based Power 472 21,70,141 17.79 421 20,41,084 15.45

Nuclear Based Power 22 1,74,684 1.43 22 1,74,684 1.32

Non Conventional Energy 930 2,32,084 1.90 989 2,89,037 2.19

Services & Utilities 54,592 58,91,493 48.28 59,552 66,44,808 50.30

Hotels & Restaurants 306 19,132 0.16 283 21,190 0.16

Community Services 14,036 7,42,239 6.08 16,200 8,51,373 6.44

Hospitals 1,671 1,16,064 0.95 1,852 1,40,029 1.06

Tourism & Recreation 1,524 98,097 0.80 1,711 1,07,238 0.81

Water & Sewerage Pipeline & Dist. 3,855 2,61,289 2.14 4,965 3,11,193 2.36

Water, Sewage & Effluent Treatment 1,100 52,228 0.43 1,276 52,453 0.40

Other Community Services 5,886 2,14,560 1.76 6,396 2,40,460 1.82

Transport Services 27,737 38,93,234 31.91 29,922 43,50,821 32.93

Roadways 21,679 14,06,619 11.53 23,324 17,03,982 12.90

Railways 1,140 15,50,660 12.71 1,189 16,42,854 12.44

Airways (Aviation Infrastructure) 187 1,07,220 0.88 196 1,21,428 0.92

Shipping Infrastructure 572 4,04,888 3.32 657 4,52,102 3.42

Pipelines 144 84,876 0.70 201 90,715 0.69

Crude Oil/POL Pipeline 15 6,340 0.05 13 5,232 0.04

Gas Pipeline 124 78,536 0.64 184 85,483 0.65

Power Distribution 3,729 3,26,591 2.68 4,036 3,25,749 2.47

Communication Services 33 3,09,226 2.53 43 2,95,014 2.23

Commercial Complexes 2,023 87,244 0.71 2,160 1,13,742 0.86

Real Estate 8,624 4,71,137 3.86 8,962 6,05,266 4.58

Industrial & Software Parks 841 2,38,533 1.95 865 2,55,193 1.93

Software Parks 222 35,587 0.29 245 46,135 0.35

SEZ/EPZ 135 96,573 0.79 120 88,920 0.67

Other Parks 460 99,685 0.82 472 1,08,152 0.82

Storage & Distribution 930 1,28,183 1.05 1,065 1,46,995 1.11

LPG Storage & Distribution 74 5,798 0.05 88 8,475 0.06

LNG Storage & Distribution 25 86,087 0.71 27 83,308 0.63

Other Storage & Distribution 831 36,299 0.30 950 55,212 0.42

Miscellaneous Services 62 2,565 0.02 48 4,870 0.04

Irrigation 2,030 7,12,926 5.84 2,098 7,80,761 5.91

Total 63,174 1,22,02,076 100.00 68,683 1,32,11,167 100.00

Outstanding Projects Investment: By Sectors (2017 & 2018)

15 October 2018

Statistics Projex Survey 72

States

September-17 September-18

No. of Invst. Share in No. of Invst. Share in

Projects ( `Crore) Total (%) Projects ( `Crore) Total (%)

States

Andhra Pradesh 2,793 8,43,373 6.91 3,338 10,17,720 7.70

Arunachal Pradesh 243 2,74,201 2.25 250 2,90,175 2.20

Assam 820 2,08,231 1.71 963 2,43,927 1.85

Bihar 2884 2,88,506 2.36 3070 3,00,312 2.27

Chhattisgarh 2,019 4,52,019 3.70 2,215 4,84,887 3.67

Delhi 1141 2,80,325 2.3 1205 3,03,908 2.30

Goa 460 30,174 0.25 416 30,483 0.23

Gujarat 3658 9,19,871 7.54 3912 9,50,759 7.20

Haryana 1,962 1,81,843 1.49 2,091 2,01,267 1.52

Himachal Pradesh 794 1,16,454 0.95 857 1,18,799 0.90

Jammu & Kashmir 668 1,54,487 1.27 754 1,54,247 1.17

Jharkhand 2620 4,56,808 3.74 2812 5,08,341 3.85

Karnataka 4,815 6,98,626 5.73 5,375 7,83,808 5.93

Kerala 1558 1,91,472 1.57 1647 1,96,811 1.49

Madhya Pradesh 4,322 6,53,321 5.35 4,604 7,15,885 5.42

Maharashtra 8781 14,36,532 11.77 9167 15,27,557 11.56

Manipur 169 32,791 0.27 176 33,883 0.26

Meghalaya 165 28,413 0.23 164 34,077 0.26

Mizoram 123 14,605 0.12 130 17,479 0.13

Nagaland 80 15,248 0.12 109 20,191 0.15

Odisha 3,381 7,71,898 6.33 3,816 9,04,622 6.85

Punjab 1366 1,85,432 1.52 1382 1,79,774 1.36

Rajasthan 2,504 4,13,097 3.39 2,678 4,45,510 3.37

Sikkim 138 30,385 0.25 131 29,605 0.22

Tamil Nadu 3,399 6,74,079 5.52 3,651 6,98,485 5.29

Telangana 3049 6,01,772 4.93 3265 6,67,048 5.05

Tripura 212 32,404 0.27 207 30,992 0.23

Uttar Pradesh 3995 6,11,582 5.01 4792 6,67,937 5.06

Uttarakhand 1,200 1,06,594 0.87 1,328 1,16,186 0.88

West Bengal 2724 2,84,176 2.33 3006 3,01,893 2.29

Union Territories

Andaman & Nicobar 75 8,329 0.07 77 11,101 0.08

Chandigarh 135 4,310 0.04 121 5,348 0.04

Dadra and Nagar Haveli 81 4,115 0.03 88 5,608 0.04

Daman and Diu 56 617 0.01 74 773 0.01

Lakshadweep 18 200 0.00 19 192 0.00

Puducherry 104 13,765 0.11 97 15,602 0.12

Multi-State, Offshore & Unallocated

Multi States 564 10,85,676 8.90 584 10,90,352 8.25

Offshore 40 75,725 0.62 47 84,616 0.64

Unallocated 58 20,624 0.17 65 21,006 0.16

All India 63,174 1,22,02,076 100.00 68,683 1,32,11,167 100.00

Outstanding Projects Investment: By States

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