Enviro Infra Engineers has clinched two significant sewage treatment projects from the Gurugram Metropolitan Development Authority (GMDA), bolstering its position in the water and wastewater treatment sector. The combined value of these projects stands at ₹85.22 crore, excluding taxes.

Project Details

The company has been awarded two distinct projects:

Dhanwapur Project

• Upgrading an existing 100 MLD Sewage Treatment Plant (STP)
• Constructing a new 75 MLD Tertiary Treatment Plant (TTP)
• Project Value: ₹51.34 crore (excluding taxes)
• Timeline: 24-month EPC completion, followed by 5-year operation and maintenance

Behrampur Project

• Upgrading an existing 120 MLD STP
• Constructing a new 90 MLD Tertiary Treatment Plant
• Project Value: ₹33.88 crore (excluding taxes)
• Timeline: 15-month EPC completion, followed by 5-year operation and maintenance

Both projects are domestic Engineering, Procurement, and Construction (EPC) contracts and include operation and maintenance responsibilities for five years post-completion.

Project Significance

These projects represent a significant step in advanced wastewater recycling and reuse, aligning with India's goals for sustainable urban water management. The tertiary treatment plants will play a crucial role in improving water quality and supporting environmental sustainability efforts in the Gurugram region.

Company Performance

The GMDA contracts contribute to Enviro Infra Engineers' impressive order book for the current fiscal year. According to the company's press release, from April 1, 2025, to date, they have secured cumulative orders worth ₹1178.30 crore in the water and wastewater treatment segment.

Management Commentary

Mr. Sanjay Jain, Chairman & Whole-Time Director of the company, expressed confidence in their strategic direction, stating, "We are pleased to witness continued trust from Government bodies across states in our technical and execution capabilities. The cumulative order inflow of over ₹1178 crores till date is a reflection of our commitment towards delivering quality water and sewage treatment infrastructure that supports environmental sustainability."

Corporate Governance

The company has confirmed that these projects do not involve any related party transactions, and there is no interest from the promoter or promoter group in the awarding entity. This transparency underscores Enviro Infra Engineers' commitment to maintaining high standards of corporate governance.

As Enviro Infra Engineers continues to expand its project portfolio, it remains well-positioned to contribute significantly to India's water infrastructure development while pursuing its growth trajectory in the water and wastewater treatment sector.

Enviro Infra Engineers Limited (EIEL) has taken a significant step in resolving project-related disputes by initiating arbitration proceedings against the Karnataka Urban Water Supply and Drainage Board (KUWSDB). The company is seeking a substantial claim of ₹6.25 crore, including interest, for various issues that have arisen during project execution.

Arbitration Details

The arbitration proceedings have been filed at the Arbitration & Conciliation Centre in Bengaluru. EIEL's decision to pursue legal recourse stems from multiple challenges faced during the project's implementation, including:

• KUWSDB's failure to provide requisite land
• Lack of project funding availability
• Non-approvals on price escalations
• Issues with revised estimates
• Withholding of various bills

Financial Implications

The total quantum of claims filed by Enviro Infra Engineers amounts to ₹6,24,93,060, which includes interest. This significant amount underscores the financial impact of the project-related disputes on the company.

Regulatory Compliance

In compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated November 11, 2024, Enviro Infra Engineers has disclosed this material litigation to the stock exchanges.

Company's Statement

Piyush Jain, Company Secretary & Compliance Officer of Enviro Infra Engineers Limited, stated in the regulatory filing:

"The Company has instituted Arbitration against Karnataka Urban Water Supply and Drainage Board ("KUWSDB") at Arbitration & Conciliation Centre – Bengaluru. Our Company has filed Arbitration Claims against the KUWSDB, for various reasons not limiting to failure on account of KUWSDB for providing the requisite Land, lack of availability of funds for the Project, non-approvals on price escalations, revised estimates and withholding various Bills etc."

The outcome of this arbitration could have significant implications for Enviro Infra Engineers' financial position and its ongoing projects with government entities. Stakeholders will be closely watching the proceedings as they unfold, given the substantial amount involved in the claim.