In a major development for India’s infrastructure sector, a joint venture between Hindustan Construction Company (HCC) and Tata Projects Limited (TPL) has secured a substantial contract worth ₹2,191 crore for the construction of an underground corridor for the Indore Metro. This project marks a significant milestone in the expansion of India’s urban transit infrastructure, particularly in the city of Indore, Madhya Pradesh.
Project Overview
The awarded package, known as IN-05R, is the first and only underground segment of the 31.32 km Indore Metro Phase 1 project. It comprises the development of an 8.65 km-long corridor, including seven stations and underground tunnels. The stations will be located at key points such as Indore Railway Station, Rajwada, Chota Ganpati, Bada Ganpati, Ramchandra Nagar, BSF/Kalani Nagar, and Airport. This corridor will connect a ramp east of Indore Railway Station to a ramp west of Airport Station, enhancing connectivity across the city.
The construction of the underground segment will utilize advanced tunnel boring machines (TBMs) to excavate an 11.32 km-long tunnel. This technology ensures efficient and precise tunneling, minimizing disruptions to the city’s surface infrastructure.
Joint Venture Details
HCC has a 55% holding in the joint venture, which translates to ₹1,205 crore of the overall contract value. The partnership combines the strengths of the two companies, with HCC’s rich experience in metro projects and Tata Projects’ capabilities in large infrastructure development
Impact on HCC and Tata Projects
Securing this contract is a major fillip for HCC, which has been spearheading many metro projects all over India. HCC has played a role in the construction of large-scale metro networks like Delhi Metro, Bangalore Metro, Mumbai Metro Line I, and Kolkata Metro. The company is currently working on building 4 km of twin tunnels and four stations for Mumbai Metro Line III and two packages for Chennai Metro.
With its strong ability to undertake large infrastructure projects, Tata Projects complements HCC’s capabilities, making their joint venture a strong player in the Indian construction industry.
Market Reaction
Following the announcement, shares of Hindustan Construction Company surged nearly 4% to ₹23.95. Despite this positive movement, HCC’s stock has faced challenges this year, tumbling 40% so far. The recent contract win is expected to bolster investor confidence and potentially stabilize the stock’s performance.
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