Ircon International Limited (IRCON), a government-owned engineering and construction company, has recently secured orders for three major infrastructure projects worth over ₹1,869 crore. These contracts were awarded by the Mumbai Metropolitan Region Development Authority (MMRDA) and Rail Vikas Nigam Limited (RVNL). The projects include two significant works for Mumbai Metro and a major railway line construction project in Madhya Pradesh.
Railway Project Contract Awarded in Madhya Pradesh
Ircon has announced that it has received a contract worth ₹755.78 crore from Rail Vikas Nigam Limited (RVNL) for a railway project in Madhya Pradesh. This project has been awarded to the IRCON–JPWIPL Joint Venture, in which Ircon holds a 70 percent stake. Thus, Ircon's share in this contract is ₹529.04 crore (including GST).
This project involves the construction of a new broad-gauge railway line in the Indore-Budni section of the West Central Railway, from Pipaliya Nankar (excluding) to Budni. This includes road works, minor bridges, building construction, track laying, and other civil and electrical works. The project completion timeline is set at 36 months, followed by an additional responsibility period of 6 months.
MMRDA Awards Contract for Mumbai Metro Line-5
Ircon has also received two separate contracts for the Mumbai Metro project. The first contract is from MMRDA for Package-2 of Mumbai Metro Line-5. The total cost of this project is ₹471.29 crore. It includes the design, construction, installation, integration, testing, and commissioning of a 220 kV receiving substation.
Ircon is also responsible for laying 220 kV, 33 kV, and 25 kV cables, switching stations, a 25 kV overhead catenary system, SCADA system, auxiliary electrical distribution system, electrical and mechanical works, as well as the installation of lifts and escalators. The project is targeted for completion in 108 weeks.
Another Major Contract Received for Mumbai Metro Line-6
The second major order from MMRDA to Ircon is related to Mumbai Metro Line-6. This project is named CA-233 and is valued at ₹642.44 crore. It includes power supply, traction system, E&M works, lifts, and escalators. The project timeline is set at 104 weeks.
Recent Performance of the Company's Shares
Ircon's share performance in the market has not been particularly b recently. On Friday, the company's share closed at ₹186.74, down by 1.60 percent. Over the past 5 days, it has seen a decline of 2.08 percent. In one month, it has fallen by 1.98 percent. Looking at 6 months, there has been a decrease of 14.70 percent. However, if we consider the entire year, Ircon's share has recorded a decline of 40.92 percent so far.
Signs of Activity in the Share Market on Monday
Following the news of the company receiving such large orders at once, activity is expected in Ircon's share in the market on Monday. Experts believe that receiving such large contracts could increase investor confidence, and this could directly impact the stock's movement.
Company's Identity and Role
Ircon International Limited is a Mini Ratna Category-I public sector company that operates under the Ministry of Railways, Government of India. The company plays an active role in railway projects, civil construction, signaling, track laying, and highway projects in India and abroad. Due to its reputation and extensive experience, the company often receives large government and semi-government contracts.
Regional Impact of the Projects
The railway project in Madhya Pradesh has the potential to strengthen the transport network in the region. The new broad-gauge line from Indore to Budni is expected to improve the movement of goods and passenger traffic. Meanwhile, the electrical and mechanical works under the Mumbai Metro projects will provide better facilities to passengers.
Ircon's Significant Presence in the Infrastructure Sector
In recent years, Ircon has completed several mega projects in the country on time and with quality. Whether it is laying railway lines, constructing bridges or metros, the company has established itself as a reliable player. These new contracts further highlight the company's presence and strength.
