LCC Projects receives Acceptance of Tender for Gujarat water supply EPC work of INR.151.57 crore
LCC Projects Limited has received an Acceptance of Tender from the Office of the Executive Engineer, Sauni Yojana Division, Rajkot, Government of Gujarat.
By ScoutQuest · · 2 min read
- Estimated Contract Value
- INR.151.57 crore (excluding GST)
- Construction Period
- 24 months
- O&M Period
- 10 years
What was announced
LCC Projects Limited has received an Acceptance of Tender (AOT) from the Office of the Executive Engineer, Sauni Yojana Division, Rajkot, Government of Gujarat. The formal contract or agreement is to be executed in accordance with the tender conditions.
The work is an Engineering, Procurement and Construction (EPC) contract for supplying water from Machhu-I Dam to Triveni Thanga Reservoir and various villages of Wankaner and Chotila Taluka, together with operation and maintenance of the commissioned project for 10 years.
Key numbers from the disclosure
- Estimated value of the work: INR.151.57 crore (excluding GST)
- Construction period: 24 months
- Operation and maintenance period: 10 years
- Awarding entity: a domestic entity
- The promoter / promoter group / group companies have no interest in the awarding entity
- The order does not fall within related party transactions
How the project is structured
The work has two phases. First comes the construction phase of 24 months, in which the company is to engineer, procure and construct the water supply system. After that comes an operation and maintenance phase of 10 years for the commissioned project. So the engagement runs over a long period, not just the construction window.
What to keep in mind
- The figure stated is the estimated value of the work, excluding GST.
- The update states that the formal contract/agreement is to be executed in accordance with the tender conditions.
- The awarding entity is a State Government division, and the company has said it will update the exchanges on any further developments in relation to the project.
Perception
Receipt of a government AOT of this size can be perceived as a positive development for the company's order pipeline, since it adds a quantified, long-duration work order. At the same time, the value is an estimate excluding GST and the formal agreement is still to be executed as per the tender conditions.
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More numbers
- Estimated value of the work (excluding GST)INR.151.57 Crore
- Construction period24 Months
- Operation and maintenance period10 Years
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