EPC Infrastructure Contracts
PNC Infratech Receives Letter of Acceptance for ₹559.53 Crore EPC Bridge Project in Kanpur
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PNC Infratech Limited has received a Letter of Acceptance (LoA) from UP State Bridge Corporation Limited (UPSBC) for an EPC bridge construction project in Kanpur, Uttar Pradesh. The negotiated contract value stands at ₹559.53 crore excluding GST.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Letter of Acceptance (LoA)
Type: EPC Infrastructure Contracts
Impact: Positive
Immediate Effect: The company strengthens its infrastructure order book with a major domestic EPC project involving a 4-lane bridge and associated infrastructure works in Uttar Pradesh.
Key Metrics:
- Project Value (Negotiated): ₹559.53 crore (excluding GST)
- Earlier Quoted Bid Value: ₹571.81 crore
- Reduction after negotiation: ₹12.28 crore
- Completion Period: 36 months
- Project Type: EPC Infrastructure Project
- Participation Ratio in JV: 50:50
Highlight:
- Label: EPC Project Win
- Value: ₹559.53 crore Letter of Acceptance received from UPSBC
What Happened ?
PNC Infratech Limited announced receipt of a Letter of Acceptance from UP State Bridge Corporation Limited for a major EPC infrastructure project in Kanpur, Uttar Pradesh.
The project involves construction of a 4-lane major bridge over the Ganga River with footpath facilities, approach roads, and protection works connecting Trans Ganga City to Kanpur City.
The project was awarded to a joint venture between PNC Infratech Limited and SPS Constructions India Private Limited with equal participation. Following negotiations after opening of price bids, the contract value was revised downward from ₹571.81 crore to ₹559.53 crore excluding GST.
key highlights
Project Scope & Contract Structure:
- Project awarded by UP State Bridge Corporation Limited (UPSBC).
- EPC contract for construction of a 4-lane major bridge over the Ganga River.
- Scope includes footpaths, approach roads, and protection works.
- Project location: Kanpur, Uttar Pradesh.
- Contract executed under EPC mode.
- Joint venture formed between PNC Infratech and SPS Constructions India Pvt. Ltd.
- JV participation ratio is 50:50.
- Contract value revised after negotiations from ₹571.81 crore to ₹559.53 crore.
- Completion timeline fixed at 36 months.
- Project categorized as domestic infrastructure order.
Note:
- The order further strengthens PNC Infratech’s presence in road and bridge EPC infrastructure projects across India.
Risk Analysis
Key Risks
- Margin pressure may arise due to raw material and construction cost fluctuations.
- Long execution period of 36 months increases project management complexity.
- Infrastructure projects may face land acquisition or regulatory delays.
- Weather disruptions and logistics challenges may impact execution timelines.
Worst Case Scenario
- If execution delays or cost overruns emerge, project profitability and working capital cycles could be affected.
Risk Level: Medium
Company Commentary
- The JV has officially received the Letter of Acceptance from UPSBC.
- Negotiated contract price of ₹559.53 crore has been accepted by the authority.
- The project will be executed under EPC mode.
- The company highlighted that the JV was declared the L1 bidder before receipt of LoA.
Official Exchange Filing: PNC Infratech Limited