Dilip Buildcon Limited (DBL) has emerged as the lowest bidder for a significant infrastructure project in Kerala, marking a major milestone for the company in the industrial corridor development sector.

Project Details

DBL, through its joint venture DBL-PSP (with DBL holding a 74% stake), has been declared the L-1 bidder for an industrial corridor project valued at Rs 1,115.37 crore, excluding GST. The project, awarded by the Kerala Industrial Corridor Development Corporation Limited, involves the design, construction, testing, commissioning, and operation & maintenance of infrastructure works at Pudussery Central & Kannambra of Palakkad Node in Kerala.

This project is part of the extension of the Chennai Bengaluru Industrial Corridor (CBIC) to Kochi via Coimbatore. The contract has been awarded on an Engineering, Procurement & Construction (EPC) basis with a completion period of 42 months.

Project Scope

The scope of work includes:

• Design and construction of infrastructure works
• Testing and commissioning of the developed infrastructure
• Operation and maintenance of the facilities

Financial Implications

The project's value of Rs 1,115.37 crore (excluding GST) represents a significant addition to Dilip Buildcon's order book. This contract underscores the company's growing presence in large-scale infrastructure projects and its capability to undertake complex industrial corridor developments.

Corporate Governance

In line with regulatory requirements and the company's commitment to transparency, Dilip Buildcon has taken the following steps:

1. The company has made a detailed disclosure to the stock exchanges as required under SEBI regulations.
2. The trading window for insiders, designated persons, and their immediate relatives has been closed until 48 hours after this information becomes publicly available, in accordance with the company's Code of Conduct for Prevention of Insider Trading.

Market Impact

This project win is expected to bolster Dilip Buildcon's position in the infrastructure sector, particularly in industrial corridor development. It also highlights the company's competitive edge in securing large-scale government projects.

As the infrastructure sector continues to be a key focus area for economic growth in India, companies like Dilip Buildcon are well-positioned to benefit from the increasing investments in industrial corridors and related infrastructure projects.

Investors and market analysts will likely be watching closely to see how this project contributes to Dilip Buildcon's overall performance and future growth prospects in the coming quarters.

Dilip Buildcon Limited (DBL), a prominent infrastructure company, has announced significant victories in securing major projects in Rajasthan and Gurugram. The company's joint ventures have been awarded contracts for a water project and a metro project, collectively valued at ₹4,455.63 crore.

Rajasthan Water Grid Project

The DBL-RAMKY Consortium, a joint venture of Dilip Buildcon, has been declared the lowest bidder (L-1) for the Rajasthan Water Grid Project, valued at ₹2,952.00 crore, including GST.

Project Details

The project, awarded by Rajasthan Water Grid Corporation Limited (formerly known as Eastern Rajasthan Canal Project Corporation Limited), involves the construction of a feeder from Isarda to Khura Chainpura to Bandh Baretha Bharatpur. This comprehensive infrastructure initiative includes all components and comes with an operation and maintenance (O&M) responsibility for a period of 20 years.

Contract Specifics

The Hybrid Annuity Model, under which this project has been awarded, is a combination of engineering, procurement, and construction (EPC) and build-operate-transfer (BOT) formats, typically used in infrastructure projects to balance risk sharing between the government and the private entities.

Gurugram Metro Project

In another significant development, Dilip Buildcon, through a joint venture, has won a contract worth ₹1,503.63 crore for a Gurugram Metro project. This metro rail development contract further solidifies the company's position in the infrastructure sector.

Company Disclosure

In compliance with regulatory requirements, Dilip Buildcon has implemented a trading window closure for insiders. This restriction will remain in effect until 48 hours after the project information becomes publicly available, adhering to the Securities and Exchange Board of India (SEBI) regulations on insider trading.

Project Significance

The Rajasthan Water Grid Project is part of the state's efforts to improve water infrastructure and management. This initiative is crucial for enhancing water security and distribution in the region, potentially benefiting numerous communities across Rajasthan.

The Gurugram Metro project will contribute to the improvement of urban transportation infrastructure in one of India's rapidly growing cities.

These substantial contract wins are expected to bolster Dilip Buildcon's order book and strengthen its position in the infrastructure sector, particularly in water management and urban transportation projects. The long-term nature of the Rajasthan Water Grid contract, with its 20-year O&M component, provides the company with a steady revenue stream over an extended period.