In the current month’s update on the infrastructure sector, we have assessed trends in project tenders, project awarding, port data, etc.
Key trends observed during the month
■ Total value of tenders issued in Dec2014 stood at Rs439.2 bn (-29.1% YoY) led by weak tendering from the water segment (-90% YoY), irrigation segment (-48% YoY), community services (hospitals, institutional buildings) and real estate segment. We also witnessed decline in total number of tenders. However total value of tenders issued in YTDFY15 stood at Rs3071 bn (-4.5% YoY)
■ Total value of contracts awarded in Dec2014 stood at Rs184bn (-19.7% YoY) led by lower awarding in roadways (-66.6% YoY), Railways (-49% YoY), power equipment
■ (-46.8%).However total value of contracts awarded in YTDFY15 stood at Rs1923 bn
■ (-5.3% YoY)
■ We witness that over the last 9 months awarding activity has picked from NHAI level and has awarded projects amounting to Rs103 bn/ 1755 km. The NHAI awarded EPC contracts worth Rs47bn/1049 km and awarded BOT contracts worth Rs55.8 bn/706 km.
■ According to press release released by MORTH (Ministry of road & transport) road length of 3419 km has been awarded till October 2014 achieved 40% of the annual awarding target of 8500 km.
■ As far as the competitive intensity is concerned in the EPC projects barring 9 projects we saw aggressive bidding in 3 projects where the bidding cost remained 14-24% lower than the benchmark cost
■ Major Indian Ports handled 49.3 MMT in Dec2014, showing a modest growth of 2.9% YoY and 1.5% MoM in port traffic. YoY growth was driven by the others category (+16.9% YoY) and Coal (+8.8% YoY) while Iron Ore (-33% YoY) and Fertilizer (-22.6% YoY) witnessed a sharp decline
■ On YTD basis Container traffic on the West Coast grew to 6.44 mn TEUs (+13.3% YoY) in YTDFY15. Mundra port (+19.8% YoY, 32.3% share of total), Pipavav port (+21.8% YoY, 9.9% share of total) & JNPT (+10.3% YoY, 49.7% share of total) were the major growth drivers.
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