Construction firm PSP Projects Ltd has secured a significant arbitration victory against Bhiwandi Nizampur City Municipal Corporation (BNCMC), with the Arbitral Tribunal awarding the company ₹61.44 crore plus accrued interest.

Arbitration Award Details

The Arbitral Tribunal pronounced its decision on January 11, concluding the arbitration proceedings between the two parties. The award represents a final arbitral decision rather than a negotiated settlement, according to PSP Projects.

Payment Terms and Conditions

Under the arbitration award, BNCMC has been directed to pay PSP Projects the principal amount of ₹61.44 crore along with interest that has accrued up to the date of the award. The payment must be completed within 60 days of the award announcement.

Should BNCMC fail to make the payment within the stipulated 60-day period, the municipal corporation will become liable to pay additional interest at 11% per annum. This interest will be calculated on both the awarded amount and the previously accrued interest, running from the award date until the actual payment is made.

Company Background

PSP Projects operates across multiple construction segments, undertaking industrial, institutional, residential, and luxury development projects. The company has been involved in several landmark projects, including the notable Surat Diamond Bourse development.

Market Performance

Shares of PSP Projects Limited closed at ₹835.00 on January 12, registering a gain of ₹1.90 or 0.23% on the BSE. The stock's modest upward movement reflects investor response to the arbitration award announcement.

The arbitration award adds to PSP Projects' recent corporate developments, following the company's previous announcement of securing construction orders worth ₹1,764 crore in Ahmedabad and Adani Infrastructure's acquisition of a 34.41% stake in the company.

PSP Projects has secured a major contract from BNCMC (Brihanmumbai Municipal Corporation) worth ₹614.40 crores, representing a significant business development for the construction and infrastructure company. This substantial order addition strengthens the company's project pipeline and demonstrates its continued success in winning large-scale municipal contracts.

Contract Details

The contract details highlight the scale and importance of this business win for PSP Projects:

Strategic Significance

This contract award from BNCMC represents a notable achievement for PSP Projects in the competitive municipal infrastructure space. The Brihanmumbai Municipal Corporation is one of India's largest and most prominent municipal bodies, making this contract win particularly significant for the company's reputation and market positioning.

The substantial value of ₹614.40 crores indicates the scope and scale of the project, which will contribute meaningfully to PSP Projects' order book and revenue pipeline. Such large municipal contracts typically involve comprehensive infrastructure development work, showcasing the company's capabilities in handling complex public sector projects.

Business Impact

The BNCMC contract represents a major addition to PSP Projects' existing order book, providing revenue visibility and business growth momentum. Municipal corporation projects often serve as reference points for future contract opportunities, potentially opening doors to similar large-scale infrastructure assignments from other civic bodies across India.

This contract win demonstrates PSP Projects' continued ability to compete effectively in the public infrastructure segment and secure substantial orders from prestigious clients. The company's success in winning this BNCMC contract reflects its established track record and technical capabilities in delivering municipal infrastructure projects.