Indian Stock Market

C&C Constructions has said it was planning bids for projects worth $1200 million (Rs 5,595 crore) in Oman, Kuwait and Afghanistan to enhance its overseas presence.

C&C, which is currently executing projects of over Rs 3000 crore in India and Afghanistan, will make the bids in partnership with Spanish firm, Isolux Corsan.

“We plan to tap huge infrastructure space overseas. We are going to bid for three projects worth $400 million (about Rs 1,400 crore) each in Oman, Kuwait and Afghanistan,” Chairman C&C Constructions JS Johar said.

The domestic firm had entered a pact with the Spanish company last month to jointly execute overseas infrastructure contracts, exceeding Rs 500 crore, in building roads,airports, specialised buildings and hospitals.

At present, the company is executing projects worth Rs 3,200 crore projects, 11 per cent of which is based in Afghanistan while the rest comes from India.

Afghan Parliament work order is one of the prime contracts the company is executing in Afghanistan.

“The Afghan Parliament work order was given to the company by the Central Public Works Department (CPWD), Government of India which is helping the war-torn country strengthen its infrastructure, Johar said.

The chairman of C&C Construction that provides engineering, procurement and construction services for infrastructure projects, said the company will also retain its focus on building domestic infrastructure, specially in the highways and roads sector.

C&C Construction is developing road projects worth Rs 1,500 crore in Bihar, three road projects, including Yamuna Expressway contract in UP and six parking lots in Delhi to accommodate up to 300 vehicles each in preparation of the upcoming Commonwealth Games.

Hyderabad-based infrastructure company IVRCL Infrastructures and Projects Ltd is scouting for a strategic investor for its Maharashtra-Goa highway project worth Rs 3,100 crore. It is also mulling to offload some of its land bank to infuse capital for further investments.

“We are open to inducting a strategic partner in the special purpose vehicle (SPV) for the Maharashtra-Goa highway project as the company has 100 per cent holding in this entity,” S Ramachandran, managing director, IVRCL Assets and Holding, said.

The company bagged one of the largest toll projects in the country, stretching 122.06 km, from the National Highway Authority of India in June. The project taken up under the National Highway Development Programme (NHDP)-phase III, has a concession period of 23 years and has a capital grant of Rs 644.72 crore.
As per the specifications, this project will undertake four-laning and six-laning work on the NH-17 from the Maharashtra -Goa border to Panaji-Goa-Karnataka.

In addition to the present road project, IVRCL has another four projects like Salem to Kumarpalyam of 53 kms, Kumarpalyam to Chengapalli of 47 km, Jalandhar to Amritsar of 49 kms and Guna bypass in Madhya Pradesh of 13 kms to work on.

“We have achieved financial closure of three of the four road projects as of now. Financial closure for Kumarpalyam to Chengapalli project is expected to be achieved by The end of this month,” Ramachandran said.

In order to fund its future investments, the company is also planning to offload some of its land bank with a possible dilution of its present holding in an improved market condition.

“We have a target to offload Rs 100 crore worth of land this fiscal. However, it will depend on proper valuation of the land parcel as we are averse to any distress sale,” he added.

In an improved market condition, the company may opt to dilute up to 5 per cent stake from its present holding of 80.5 per cent after proper valuation, he said.

IVRCL Assets and Holding Ltd, which posted a loss of Rs 6.40 crore and a revenue of Rs 143.11 crore last fiscal, is expected to return to black during the present fiscal.

“We expect a bottomline of Rs 100 crore and a turnover of Rs 1,000 crore during the present fiscal,” Ramachandran said.

IVRCL Infrastructure posted a net profit of Rs 211 crore for FY10, down by 6 per cent over corresponding period last year. While net debt of the company was Rs 1,450 crore by March, 2010, its order book stood at Rs 19,500 crore by May-end.

IL&FS Transportation is planing to bid for projects in Kazhakstan,Tanzania & South Africa.

Project bidding:

Surface transport infrastructure firm IL&FS Transportation Networks Ltd, is eyeing projects overseas for expansion, a top official said on Wednesday.

IPO Funds:

The firm, which raised Rs 7 billion through an IPO in March, will bid for projects in Tanzania and South Africa, and is expecting to be awarded a road project in Kazhakstan, Managing Director K Ramchand said. “We are doing a feasibility study for a project in Tanzania. We are trying to do something in South Africa as well.

New Road Projects:

These are road projects,” he said. IL&FS Transportation will bid for a 185-kilometre-long road project in South Africa, valued at Rs 60 billion, and also conduct a feasibility study for a Rs 20-billion road project in Tanzania, he added.

The company will make the South Africa bid by October, and expects the bidding process to be finalised by December. “We have a local partner (for Tanzania). The feasibility study will be done in two months,” he said.

Lowest bidder:

The firm, a unit of transport and infrastructure firm IL&FS, had also emerged as one of the lowest bidders for a $1.5-
billion, 300-km-long European road project in Kazhakstan.

The project is yet to be awarded. “It is still under the negotiation process. It’s a conditional bid, it’s not a compliant bid,” Ramchand said. PROJECTS AT HOME Back home, IL&FS Transportation expects to tie-up Rs 62.2 billion for three road projects in Jammu & Kashmir, Andhra Pradesh and the North East in two months.

The projects were awarded in FY11. “The concession, (or license) agreements for all of these would be signed in the next 15-20 days. We will achieve financial closure in two months, unless the markets suddenly become volatile, which we do not think will happen.”

The firm which has total road assets (including developed and under development) of 12,000 km, has already achieved financial closure for 5 road projects, and a metro project in Gurgaon, worth about Rs 71 billion.

Its current order book stands at around 150 billion rupees, up from Rs 120 billion in March, Ramchand said. The National Highways Authority of India (NHAI) awarded 2,988 km of projects to infrastructure firms in the year to March 2010, with IL&FS Transportation having a 10.1 per cent share in the project awards, trailing only IRB Infra, according to a report by Motilal Oslal.

Net profit:

Its consolidated net profit for FY10 surged to Rs 3.44 billion from Rs 262.6 million in the previous fiscal and Ramchand expects profits to continue rising in the current fiscal. “I think we would see a rising trend. That’s evident from the order book which is coming up,” he said, adding the firm would not see an exponential growth seen in FY10. Shares in IL&FS Transportation closed flat at Rs 280 a share in a steady Mumbai market.

Madhucon Projects an infrastructure company engaged in road construction is a successful bidder for 4-laning of Chhapra – Hajipur Section of NH-19 from km 143.200 to 207.200 in the State of Bihar under NHDP-III on BOT (Annuity) basis and recently National Highway Authority of India has issued Letter of Award (LOA) to Madhucon Projects Limited.

Madhucon Projects has to Design, Build, Finance, Operate and Transfer (DBFOT) Annuity basis under NHDP-III for Semi-Annual Annuity of Rs 65,43 crores. The concession period is 5 years including construction of 910 days. Madhucons has accepted the LOA and is proceeding with the forming of a Special Purpose Vehicle in the name of Chhapra – Hajipur Expressways Limited.

Larsen & Toubro has declared a net profit of Rs.1438 crores for this quarter in year 2010.

Netprofit is up by 44% . Analysts had predicted less than this. Stock is up 5% today. Market cap has reached Rs.1,00,000 crores.

With this upmove Bharti Airtel has been displaced from top 10 market cap companies in Indian bourses.

This increase in net profit is due to increased executing of orders from L & T. Orders have reached 1,00,000 crores for the company so far.

Sure, the company has a better future.

IVRCL Infrastructure has bagged order worth 822 crores. orders are in Transportation, Water and Building Divisions.

The company has secured a contract for “Construction of Automotive Test Tracks at NATRAX-Pithampur and GARC- Chennai” awarded by NATIONAL AUTOMOTIVE TESTING AND R&D INFRASTRUCTURE PROJECT (NATRIP), New Delhi a registered society under the Ministry of Heavy Industries & Public Enterprises, Govt. of India. The total completion period is 39 months for Pithampur work and 27 months for Chennai work. The Value of the contract is Rs.525.97 crores.

The company has secured an order for “Detailed Survey, Design and drawing including construction of intake well cum Raw water pump house including coffer dam as per requirement, approach gangway and substations at pumping points all complete with supplying, installation and commissioning of raw water pumping equipments, raw water rising mains, water treatment plant at Rukka, clear water pumping equipments at Rukka, clear water transmission mains to different UGRs and ESRs, construction of underground reservoirs, supplying, installation and commissioning of distribution pumping equipments at UGRs, construction of elevated service reservoirs, supplying, installation and commissioning of distribution network in specified zones, all complete job for RANCHI WATER SUPPLY PROJECT under JNNURM on turnkey basis” awarded by DRINKING WATER & SANITATION DEPARTMENT, GOVERNMENT OF JHARKHAND. The total completion period is 30 months. The Value of the order is Rs.234.71 crores.

The company secured a contract for “Construction of quarters, bungalows, non-executive hostel and common buildings for Paradip Refinery Township (Phase IV at Paradip, Orissa” awarded by INDIAN OIL CORPORATION LTD, New Delhi. The total completion period is 24 months. The Value of the contract is Rs.62.13 crores.

Reliance Industries has invested more than 26% stake and less than 50% stake in Deccan 360.

Here is a press release for the same.

Reliance announced their investment in Deccan 360, India’s new delivery and distribution network, an initiative which will provide a remarkable boost in transforming the logistics spectrum in India. This investment will help Deccan 360 to increase the air and surface network coverage across the country.

Deccan 360 will introduce world class services & systems to India’s express end-to-end supply chain logistics space in both business-to-business and retail sector. This investment is being made by a wholly owned subsidiary of Reliance Industries Ltd. Deccan 360 is the first logistics company in India to adopt and develop a hub and spoke model. Deccan 360 has appointed National Service providers on franchisee model and has already set up over 80 service centers and 8 surface hubs to service the operations. It has currently deployed 8 freighter aircrafts, covering 15 airports, with a fleet of over 300 trucks and 850 vehicles nationwide. It has a capacity of more than 300 tonnes per night by air, with over 60 warehousing hubs, delivering overnight services to 50 cities, all driven by 60 plus franchisee nationwide. Deccan 360 has integrated a multi modal capability ensuring clock-work precision in its operations and offers a never before reach.

Commenting on the initiative, Mr. Mukesh D. Ambani, Chairman & Managing Director, Reliance Industries Ltd. said, “We believe that our collaboration with Deccan 360 will see a transformation in the logistics domain in India. I have full faith in Capt. G. R. Gopinath and his team to make this a big success. We are sure that this initiative will propel the customer experience to the next level in India in the logistics domain.”

On the occasion, Capt. G. R. Gopinath, Chairman & Managing Director said, “Deccan 360′s strategic partnership with Reliance will enable us to realize our dream faster – a dream of creating world class logistics reach to every nook and corner of India. Our air and surface network would open up backward reaches of India and integrate these with the Metros. We all know that supply chain is the lifeblood of a country’s economy. This logistics capability will help setting up both small scale industries & large manufacturing centers wherever resources are available and in turn reduce cost of the product and expand the consumer base. For an existing business, an efficient, just-in-time supply chain will reduce business cycle and help reduce manufacturing cost in turn making India a globally formidable economy.”

The core of Deccan 360′s hub and spoke model is the state hub being developed across a total area of 50 acres at MIHAN, Nagpur. This central hub in Nagpur will form an extensive state-of-the-art multimodal (surface and air) storage, transportation and delivery network bringing connectivity to every corner of the country. To ensure enhanced customer service, a central call centre has been set up at Bangalore, the single national telephone number being 30 360 360.

Deccan 360′s pan India Air & Surface transportation network supports an extensive service portfolio catering to differentiated express transportation needs of various industry verticals – Pharmaceuticals, Machinery, Manufacturing, Retail, Electronics, Textiles, Banking, etc., depending on the time & value criticality of the products they ship. Unlike other express companies, Deccan 360?s focus will be on delivering innovative customized express solutions nationwide. This would include reducing transit times between small towns and the rest of the nation. Deccan 360?s air & surface network offers unmatched next day connectivity and will offer higher capacity and twice the reach than any other express transportation & logistics company in the country.

Mitsui is soon going to be seen in Reliance Industries Haryana SEZ . Here is a press release from Economictimes

Mukesh Ambani-controlled Reliance Industries (RIL) is likely to rope in Japanese firm Mitsui as an investor in its special economic zone (SEZ) project in Haryana, a clear indicator that the project is finally taking off.

Mitsui has given a letter of intent to Reliance to pick up 350-400 acres of land in the SEZ to set up a logistics park, the company sources said.

At about Rs 1 crore an acre, the deal size could be as high as Rs 400 crore, said a person close to the transaction.

Last year, RIL brought in IL&FS, a specialist infrastructure financing and management company, as a co-promoter to play a lead role in the management of the $10-billion project, long billed as India’s biggest and most ambitious SEZ project spanning as much as 25,000 acres.

Though the project suffered due to the economic downturn in the last quarter of 2008, it has gained traction recently as foreign investors have become keener to participate in one of the world’s fastest growing economies.

A company official told ET that besides Mitsui, two other Japanese firms are engaged in talks to invest in the Haryana SEZ. He, however, declined to reveal the other names stating that the talks were at a very preliminary stage.

Mitsui will buy the land on the Gurgaon-Farrukhnagar stretch. The Haryana SEZ was conceived in 2005 with a target of generating 5 lakh jobs and meant to house a cargo airport, a 2,000 MW power plant and with rail linkages to Delhi.

An RIL spokesperson said the company would not like to comment on what he described as ‘market speculation’. “As per the company policy, we would not like to comment on market speculations and individual transactions. Currently, requisite permissions, statutory approvals and clearances are being processed and we are working on the financial closure of the project,” the spokesperson said.

RIL, which has held a 90% stake in the project, had also considered tie-ups with global firms such as Walt Disney, Time Warner or Universal to establish theme parks and entertainment centres.

In 2005, RIL signed an agreement with the Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) under which both sides were to have directors in a ratio of 2:1 on the board of their joint venture company. The deal also involved HSIIDC giving nearly 1,400 acres for the project for around Rs 500 crore.

In 2006, when the SEZ rules were notified, there was a mad rush for setting up such projects. But demand for SEZs has cooled off since. Several big projects such as Reliance’s Navi Mumbai SEZ, Haryana SEZ, the Posco SEZ have been hit because of land acquisition problems, resistance from farmers and changing regulations.

Several projects that were announced at the peak of SEZ boom have either been called off or are stuck. Last year, real estate major DLF got four of its SEZs denotified by the commerce ministry. DLF had told the government that there was no demand for commercial space. Another real estate firm Parsvnath had put 12 of its SEZ projects on hold. Videocon had planned two SEZs in Maharashtra and four in West Bengal but has put its development plans in abeyance.
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Valecha engineering has bagged orders worth Rs.255 crores. I have invested early in this company.

Valecha Engineering Ltd a Leading Infrastructure Development Company has recently bagged two New Projects worth Rs. 255.00 crores approximately.

The company has secured a BOT Highway Project worth Rs. 200.00 crores at Madhya Pradesh and Piling works worth Rs. 55.00 cores at Orissa for Indian Oil Corporation refinery.

VEL has an organization structure in place with professional management and latest state-of-art machinery with a constant up gradation as a corporate philosophy. The Company is well positioned for rapid growth with the infrastructure being given the necessary attention in the economy since the recent past.

L&T bags orders worth $250.7 mn

L&T has announced new orders this week.

Engineering and construction firm Larsen & Toubro said on Tuesday it had got orders worth 11.26 billion rupees ($250.7 million) for metallurgical, material handling and water sector projects.

Its customers include Sterlite Industries, Hindalco Industries and Tata Steel , it said in a statement.

Era Infra Engineering has bagged orders worth Rs.500 Crores

Orders:

1. “Main Plant, CW, Make-up, Offsite Civil Works Chimney & Chimney Elevator” Package for Nabinagar Thermal Power Project (4×250 MW) at Nabinagar, District Aurangabad, Bihar by Bharatiya Rail Bijlee Company Ltd. (BRBCL) (A subsidiary of NTPC Ltd.) valued at Rs. 369.70 crores.

2. “Cast in Situ RCC Bored Piling in SMS III complex (Pkg No. 033A1) at BSP, Bhilai” valued at Rs. 59.48 Crores (approx) from Steel Authority of India Ltd., Bhilai.

3. Construction of 10 Buildings under OBC reservation Package -II CPWD- BHU, Varanasi valued at 51.14 Crores (approx).

4. Contract from Rural Electrification Authority, Lusaka Zambia, in association with Chamb Investment Ltd, for the supply, delivery, installation and commissioning of Electicity Grid Extension and Transformers in selected Areas of Zambia valued at Rs. 28.56 Crores (approx).

L & T bags Rs 1000 crore order.

It’s a construction order in Mumbai , UP and Kolkata .

Punj Lloyd wins Rs 1000 crore order.

Company won this road contract from GMR

Bandra-Versova sea link soon

New article about Bandra Versova Sea link PROJECT

The extension of the Bandra-Worli Sea Link is likly to be partly through the sea and partly along the coast. The state administration

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believes implementing this option for constructing the Bandra-Versova bridge would help the government save crores of rupees.

“Of the three options with the state government, having part of bridge on the sea and the remaining on the coastal area is the most feasible. We have approached the environment ministry for the necessary permission,” said public works (public undertaking) minister, Jaidatta Kshirsagar.

Constructing a complete bridge on the coastal area or a bridge completely in the middle of the sea are the other options. These three options were given by the engineering consultant in a report submitted last year to the state government.

The proposed Bandra-Versova Sea Link will connect to the existing Bandra-Worli Sea Link. Once this connectivity is complete, the distance between Worli and Andheri is likely to be covered in less than 25 minutes. The bridge will be of eight lanes and there will be traffic exit points at Khar and Andheri.

According to the feasibility report, a bridge measuring over 10 km — partly through the sea and partly along the coast — would cost around Rs 2,260 crore. If approved, the portion of the bridge on the coastal area will be 3 km in length and remaining will be in the middle of the sea. Other options — one constructing a bridge in the middle of the sea and measuring around 10.15 km would cost around Rs 3,155 crore, secondly constructing a bridge measuring 10.63 km completely on coastal area would cost Rs 2,372 crore.

Before going ahead, the state government has sought an economic feasibility report on the project. “Depending on the outcome of this report, the future course of action would be decided,” said an MSRDC official.

“The administrative procedures would be completed within a year,” Kshirsagar stated. “The bridge will be completed in another three-four years,” he added.

Era Infra Engineering Ltd said on Thursday it won a road contract worth 16.6 billion rupees from National Highways Authority of India (NHAI).

The contract is to widen a section of NH-58 to four lanes at a cost of 10.07 billion rupees, and to widen another section of NH-58 at a cost of 6.52 billion rupees, it said in a statement.