Patel Engineering Ltd has secured a prestigious contract worth ₹13.19 billion (₹1,318.89 crore) from the City and Industrial Development Corporation (CIDCO) to construct the Kondhane Dam and allied works in Maharashtra. The contract is a big win for Patel Engineering, consolidating its leadership in India's civil infrastructure and hydropower space.
Major Highlights
Laudable Kondhane Dam Project:
The contract is for the construction of Kondhane Dam in Karjat Taluka, Raigad district, on Roller Compacted Concrete (RCC) technology of international standards, a widely used technique for speedy and long-lasting dam construction worldwide. The scope of the work includes the erection of a 1,209-meter-long, 83-meter-high dam and essential civil, hydro-mechanical, and electrical works including three radial gates and advanced gate control systems.
Execution Timeline
The project is to be completed in 42 months, with the objective of increasing water storage capacity and catering to irrigation and drinking water requirements in the area.
Strategic Significance:
This contract victory is another feather in the cap for Patel Engineering, which has a strong track record of executing large-scale infrastructure and hydropower projects in India. The application of RCC technology is likely to facilitate quicker execution and cost savings over the long term.
Boost to Order Book and Investor Sentiment:
Patel Engineering's Kondhane Dam order is part of a recent line of order successes, including its ₹7.18 billion order for a hydropower plant in Arunachal Pradesh. These order wins have benefited the company by bolstering its order book and generating positive trend in its share price, currently perceived by investors as undervalued with massive upside potential.
Managing Director of Patel Engineering, Kavita Shirvaikar, pointed out that the project "marks another step in making our cities more livable and resilient," and is keeping with the firm's role in advancing India's infrastructure and renewable energy objectives.
"Having a solid pipeline of projects and stock trading under its fair value, Patel Engineering is constructing not just dams-it's constructing investor confidence," says InvestingPro.
Patel Engineering's recent contract win highlights its experience in intricate civil works and its increasing contribution to the support of India's infrastructure and water security requirements.
Source: Investing.com, Capital Market, Business Standard, Project Today, MarketScreener
