PNC Infratech Ltd makes foray in water sector, bags Rs290-crore water supply project in UP
Agra-based PNC Infratech Limited, a leading infrastructure construction company, has made a foray into the water sector. The company, the lead partner in a consortium, has bagged a Rs 290-crore water supply project in Uttar Pradesh.
The listed company, along with its joint venture partner Kolkata-based SPML Infra Limited, has received the letter of award (LoA) for a project of construction of Haraulipur group of villages water supply scheme (surface water) and electric/solar-based piped groundwater supply scheme in Hamirpur district in Uttar Pradesh.
The project scope includes commissioning as well as operation & maintenance (O&M) for 10 years. The Rs 289.83-crore project has been awarded by the State Water & Sanitization Mission, Namami Gange and Rural Water Supply Department.
PNC Infratech Limited’s share in the joint venture partnership is 95 per cent. The construction of the project is to be completed in 24 months and the operation & maintenance contract of for 10 years, post commissioning.
The company has been undertaking execution of major infrastructure projects including highways, bridges, flyovers, power transmission lines, airport runways and industrial area development. PNC Infratech Ltd has been taking up projects on engineering, procurement and construction (EPC) basis as well as on design-build-finance-operate-transfer (DBFOT) and operate-maintain-transfer (OMT) formats.
While the Uttar Pradesh rural water supply project marks the entry of the company into the equally competitive water sector, it is believed that the company is keen to bid for other similar projects and could look at other JV partners, wherever required.
Meanwhile, the company has posted poor numbers on a standalone basis for the second quarter ended September 2020. Net sales came down by 10.7 per cent to Rs 1053.46 crore during September 2020 quarter as against Rs 1180.22 crore in September 2019 while net profit dropped over 66 per cent to Rs 69.27 crore from Rs 206.94 crore in the corresponding quarter of 2019-20. The company’s EBITDA stood at Rs 156.89 crore during September 2020, down 48 per cent from Rs 301.90 crore in September 2019.
