Infrastructure Order Win
Indian Hume Pipe Wins ₹738.61 Crore Rajasthan Water Supply Project
NSE
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BSE
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The Indian Hume Pipe Company Limited has received a Letter of Acceptance (LOA) worth ₹738.61 crore (including GST) from the Public Health Engineering Department (PHED), Government of Rajasthan for executing a Narmada-based rural water supply project covering 275 villages in Barmer district under the JICA-funded Rajasthan Rural Water Supply & Fluorosis Mitigation Project Phase II.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Letter of Acceptance (LOA) for a major rural water supply infrastructure project.
Type: Infrastructure Order Win
Impact: Positive
Immediate Effect: The order significantly strengthens the company’s infrastructure order book and enhances revenue visibility over the project execution period while reinforcing its presence in India’s water infrastructure sector.
Key Metrics:
- Order Value: ₹738.61 Crore (including GST)
- Project Type: Design, Build, Operation & Maintenance Water Supply Project
- Execution Period: 24 months
- Defect Notification Period: 1 Year
- Operations & Maintenance (O&M): 10 Years
- Awarding Authority: PHED, Government of Rajasthan (JICA Funded Project)
Highlight:
- Indian Hume Pipe secured a ₹738.61 crore government water infrastructure project under the JICA-funded Rajasthan Rural Water Supply & Fluorosis Mitigation Programme.
What Happened ?
The Indian Hume Pipe Company Limited informed the stock exchanges that it has received a Letter of Acceptance (LOA) from the Public Health Engineering Department (PHED), Government of Rajasthan for executing the Narmada-based Water Supply Project covering 275 villages in the Dhorimanna and Chouhtan blocks of Barmer district.
The project forms part of the JICA-funded Rajasthan Rural Water Supply & Fluorosis Mitigation Project Phase IIand will be executed on an SPR basis. Besides engineering and construction, the contract includes a one-year defect notification period followed by 10 years of operations and maintenance, providing long-term service revenue opportunities.
Key Details
Project Details:
- Received Letter of Acceptance (LOA) from PHED, Government of Rajasthan.
- Project covers water supply infrastructure for 275 villages in Dhorimanna and Chouhtan blocks, Barmer district.
- Executed under JICA-funded Rajasthan Rural Water Supply & Fluorosis Mitigation Project Phase II.
- Contract awarded on an Item Rate Design-Build, Operation & Maintenance basis.
- Construction period is 24 months.
- Includes 1-year Defect Notification Period.
- Includes 10 years of Operations & Maintenance (O&M) after project completion.
- Total contract value is ₹738.61 crore (including GST).
- Awarding authority is a domestic government entity.
- The contract is not a related-party transaction.
- Promoters or promoter group have no interest in the awarding authority.
Note:
- The project strengthens Indian Hume Pipe’s presence in the government’s rural water infrastructure and drinking water development programmes.
Risk Analysis
Summary:
- The order materially improves revenue visibility and order backlog. However, execution remains dependent on timely construction, government approvals, funding availability and efficient project management.
Key Risks:
- Construction delays due to site availability or approvals.
- Execution risks associated with large EPC infrastructure projects.
- Working capital requirements during execution.
- Long-term O&M obligations require sustained operational performance.
- Potential cost inflation could impact project margins.
Worst Case:
- Delays in execution, cost overruns or slower milestone certifications could defer revenue recognition and affect project profitability.
Risk Level: Medium
Company Commentary
- The company has received a Letter of Acceptance (LOA) from PHED, Government of Rajasthan.
- The contract relates to the execution of the Narmada-based rural water supply project for 275 villages.
- The project will be completed within 24 months.
- The contract includes a one-year defect notification period and 10 years of Operations & Maintenance.
- The disclosure has been made under Regulation 30 of the SEBI (LODR) Regulations.
Official Exchange Filing: The Indian Hume Pipe Company Limited
