Twamev wins ₹19.04 crore SAIL contract for employee quarters
Twamev Construction and Infrastructure Limited has secured a contract worth ₹19,04,65,887.63 from The Steel Authority of India Limited for rebuilding employee quarters at ISP Township. The project requires a 5% security deposit and must be completed within 12 months.
*this image is generated using AI for illustrative purposes only.
Twamev Construction & Infrastructure has received a Letter of Acceptance from The Steel Authority of India Limited for the construction of “Re-building of Employees Quarter at ISP Township in Phase-1” of SAIL-ISP Burnpur, IISCO Steel Plant. The contract has been awarded at a total price of ₹19,04,65,887.63, including GST.
Contract Details
The project involves the rebuilding of employee quarters at the ISP Township. According to the terms of the agreement, the entire job must be executed in accordance with the conditions stipulated in the referred tender. The completion timeline for the project is set at 12 months from the effective date of the contract. The effective date is defined as the date of signing the contract or 30 days from the date of the Letter of Acceptance, whichever occurs earlier.
Financial and Security Requirements
As part of the contract conditions, Twamev Construction and Infrastructure Limited is required to submit a Security Deposit of ₹95,23,295. This amount is equivalent to 5% of the contract value including GST. The deposit must be submitted within 20 days from the issuance of the Letter of Acceptance in the form of a Performance Bank Guarantee (PBG). The PBG must be issued by a Scheduled Bank, excluding co-operative banks, Gramin banks, and Catholic Syrian Bank.
| Contract Parameter | Details |
|---|---|
| Total Contract Price | ₹19,04,65,887.63 (including GST) |
| Security Deposit | ₹95,23,295 (5% of contract value) |
| Completion Timeline | 12 months |
| Security Deposit Form | Performance Bank Guarantee |
The agreement specifies that a penalty of 0.2% of the original Security Deposit amount per completed day of delay will be applicable if the submission is delayed. This penalty is limited to an amount not exceeding 5% of the original Security Deposit amount. Payments for the executed portion of the order will commence only upon the submission of the requisite Security Deposit or Performance Guarantee.
How might this SAIL-ISP contract impact Twamev Construction's order book and revenue visibility for the next fiscal year?
Could this project serve as a stepping stone for Twamev Construction to secure additional Phase-2 or larger township development contracts from SAIL?
What is Twamev Construction's current debt-to-equity position, and how will the ₹95.23 lakh Performance Bank Guarantee obligation affect its working capital management?
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