Ramky Infrastructure Limited (RIL) has announced a significant development in its water infrastructure portfolio. The company's subsidiary, Mallannasagar Water Supply Limited, has entered into a Concessionaire Agreement with the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) for a major drinking water supply project.

Project Details

The agreement, executed on September 18, 2025, encompasses the HMWSSB Godavari Drinking Water Supply Scheme Phase-II & Phase-III. This ambitious project aims to fill the Osmansagar and Himayathsagar Reservoirs with Godavari water, contributing to the rejuvenation of the Musi River.

Contract Value and Structure

The project, valued at approximately INR 2,085.00 crore, will be executed under a Hybrid Annuity Model (HAM). This model is increasingly being adopted for infrastructure projects in India, as it balances the risks between the public and private sectors.

Project Timeline

The contract stipulates a two-phase execution:

1. Construction Phase: To be completed within 2 years
2. Operation Phase: Manning, Operation, and Maintenance (MOM) for 10 years following the construction completion

Strategic Importance

This project marks a significant milestone for Ramky Infrastructure, showcasing its capability to secure and execute large-scale water infrastructure projects. The initiative aligns with the broader goals of urban water management and environmental conservation in the rapidly growing city of Hyderabad.

Corporate Governance

In compliance with SEBI regulations, Ramky Infrastructure has confirmed that this is a domestic contract and does not constitute a related party transaction. The company and its promoters have no interest in HMWSSB, ensuring transparency in the contract award process.

Market Impact

While the financial implications of this project on Ramky Infrastructure's bottom line remain to be seen, the substantial contract value and long-term nature of the project are likely to be viewed positively by investors and industry analysts.

As urban water management continues to be a critical issue across India, Ramky Infrastructure's involvement in this project could potentially position the company for similar opportunities in other cities, subject to successful execution of this contract.

Investors and stakeholders will be keenly watching the progress of this project, as it represents a significant addition to Ramky Infrastructure's order book and could influence the company's financial performance in the coming years.

Ramky Infrastructure Limited has announced a significant development in its water infrastructure business. The company's subsidiary, Mallannasagar Water Supply Limited, has successfully executed a Concessionaire Agreement with the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) for an ambitious drinking water supply project.

Project Details

The project, valued at INR 2,085.00 crores, is part of the HMWSSB - Godavari Drinking Water Supply Scheme - Phase-II & Phase-III. It aims to fill the Osmansagar and Himayathsagar Reservoirs with Godavari water, contributing to the rejuvenation of the Musi River. This initiative is being implemented under a Hybrid Annuity Model of Contract.

Scope and Duration

The contract encompasses two main phases:

1. Construction Phase: To be completed within 2 years
2. Operation Phase: Manning, Operation, and Maintenance (MoM) for 10 years following the construction completion

Strategic Importance

This project marks a significant milestone for Ramky Infrastructure, showcasing its capabilities in large-scale water infrastructure projects. The Hybrid Annuity Model, which combines aspects of both EPC (Engineering, Procurement, and Construction) and BOT (Build, Operate, Transfer) models, indicates a long-term commitment and potential for stable revenue streams for the company.

Market Impact

The substantial project value of INR 2,085.00 crores is likely to have a positive impact on Ramky Infrastructure's order book and future revenue projections. Investors and market analysts may view this development as a strong indicator of the company's growing presence in the water infrastructure sector.

Environmental and Social Significance

By contributing to the rejuvenation of the Musi River and enhancing the water supply infrastructure in Hyderabad, this project aligns with broader environmental and social development goals. It underscores the increasing focus on sustainable urban development and water resource management in India's rapidly growing cities.

Ramky Infrastructure's involvement in this project through its subsidiary demonstrates the company's strategic positioning in the water infrastructure segment, potentially opening doors for similar high-value projects in the future.

As the project progresses, stakeholders will be keenly watching its execution and the impact on Ramky Infrastructure's financial performance in the coming years.