Know Latest Opportunities for Small Contractors in Construction & Infrastructure in India

The recently announced Union Budget reaffirms commitment of Government towards Infrastructure sector. To reduce development risk and revive private sector participation in infrastructure investment, the Government has on one hand launched Hybrid Annuity Model based PPP, while also simultaneously increased investment into greenfield projects. The National Infrastructure Pipeline estimates that 21% of Rs 111 Lakh crores would be invested by private sector. This is twice the investment done by private sector during last 5 years. The Government announced formation of Development Financial Institution during the Budget and with an intent to finance many Infrastructure assets. All these will open up massive developmental activities and create scope for many small contractors in construction. 

Role of L & T in execution of Infrastructure Projects

In the recent past, many large projects have been awarded by the Government. As a leader in Infrastructure construction L & T won number of projects. These orders include jobs for heavy civil infrastructure, Highways, water and effluent treatment, building and factories.

Projects in Government Sector

To name a few, L&T won an engineering, procurement and construction job of a new four-lane bridge parallel to the existing VikramshilaSetu, and the approaches across river Ganga on the newly declared NH-131B at Bhagalpur in the state of Bihar.

L & T has also bagged a design, build and operate order from Municipal Corporation, Amritsar for EPC work of a bulk water supply system in the city, which is a part of Punjab Municipal Services. 

Projects in Private Sector

In the private sector, Buildings and factories business of L&T has secured an order from a client to construct a commercial office space at Gurgaon with a built-up area of 1.2 million square feet. L&T has also bagged an order from an Indian paint manufacturer to construct a paint manufacturing plant in Sandila, Uttar Pradesh.

Opportunities for Small contractors

EPC contractors prefer for asset light model and thus shall deploy small contractors from nearby. Thus Small Contractors of Bihar and Uttar Pradesh who are specialised in civil Construction work, now at their home states due to COVID related reverse migration, will find enough work in these construction activities. Small contractors specialised in the area of mechanical fabrication, piping & erection, electrical erection and commissioning etc will also find enough business in the bulk water supply project.

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