LCC Projects Wins Rs 151.57 Crore Water Infrastructure Contract

Contract Value: Rs 151.57 crore (excluding GST).
Project Duration: 24-month construction phase and 10-year operation and maintenance tenure.

Reader Takeaway: Strong order inflow provides both immediate construction revenue and long-term recurring service income from a government entity.

What just happened

LCC Projects Limited has received an Acceptance of Tender (AOT) from the Office of the Executive Engineer, Sauni Yojana Division, Rajkot. The project is focused on water infrastructure development under the Sauni Yojana initiative of the Government of Gujarat. The scope entails Engineering, Procurement, and Construction (EPC) services for supplying water from the Machhu-I Dam to the Triveni Thanga Reservoir, covering various villages in the Wankaner and Chotila Talukas.

Why this matters

For investors, this order represents a dual-revenue model. The 24-month construction phase contributes to top-line growth, while the subsequent 10-year Operation and Maintenance (O&M) contract ensures predictable, recurring cash flows. Securing a project from a state government body also limits counterparty risk, providing high visibility for the company’s order book over the next decade.

What changes now

The company is tasked with the execution of the EPC work immediately. The contract carries no related-party risk as it is a direct award from the state government. Shareholders can expect the project to begin reflecting in the company's order book updates starting from the current quarter.

What to track next

Investors should monitor the mobilization of resources for the construction phase and subsequent updates on project milestones as the company progresses through the 24-month development cycle.