IVRCL Ltd Management Discussions.

Industry Overview

Infrastructure sector is the cornerstone of the Indian economy and plays an important role in accelerating the growth of Indias overall development. The sector covers wide range of sub-groups namely power, roads, ports, railways, telecommunication amongst others.

Investment in Infrastructure is necessary for growth. To achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion (102 lakh crore) over these years on infrastructure. The challenge is to step-up annual infrastructure investment so that lack of infrastructure does not become a binding constraint to the growth of the Indian economy. To implement an infrastructure program of this scale, it is important that projects are adequately prepared and launched.

To draw up the National Infrastructure Pipeline (NIP) for each of the years from FY 2019-20 to FY 2024-25, an interministerial Task Force was set up in September 2019 under the chairmanship of Secretary (DEA), Ministry of Finance.

The Finance Ministry released the Report of the Task Force on National Infrastructure Pipeline (abridged version) on 31.12.2019. The NIP has projected total infrastructure investment of 102 lakh crore during the period FY 2020 to 2025 in India. Energy (24 per cent), Roads (19 per cent), Urban (16 per cent), and Railways (13 per cent) amount to over 70 per cent of the projected capital expenditure during the said period.

The Task Force has given its recommendations on required changes to several key sectoral policies and other reform initiatives by the Central and State Governments such as developing a robust bond market for infrastructure companies, speedy resolution of infrastructure disputes, optimal risk sharing through better and balanced PPP contracts, and sanctity and enforceability of contracts.

The NIP captures the infrastructure vision of the country for the period FY20-25. This is the first-ever exercise undertaken in the country. However, it is recognized that financing of the National Infrastructure Pipeline would be a challenge. It is hoped that a bouquet of well-prepared projects would attract investment from Central and State Governments, Urban Local Bodies, Banks and Financial Institution, PE funds, and private investors, both local and foreign.

NIP is expected to enable well-prepared infrastructure projects which will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive. NIP also intends to facilitate supply side interventions in infrastructure development to boost short-term as well as the potential GDP growth. Improved infrastructure capacities will also drive competitiveness of the Indian economy.



Water supply is the provision of water by public utilities, commercial organisations, community endeavours or by individuals, usually via a system of pumps and pipes. Taking water thru water pipe distribution networks to the remote areas of villages in India is a herculean task, particularly in hilly regions & desert areas. Providing sufficient water to various villages in the state of Rajasthan is a challenging task, where transmission of water from available resources to the targeted places of water requirement and thru distribution network of pipelines is the only option to cater to the public. Water supply facilities would be improved and expanded in four rapidly growing cities in the State of Rajasthan. New piped water supplies would also be provided to about 2,000 villages. Particularly, the problem of water scarcity is more concentrated in the area of Bharathpur in Rajasthan where there is no natural source of water.

Drinking water to the town and its surroundings was being supplied through tube wells. However, the subsoil water in the area has very high Total Dissolved Solids (TDS) (more than 4000 PPM) and very high Chloride content (more than 2000 PPM), which makes it non-potable and harmful to humans. Public Health Engineering Department (PHED), under Govt. of Rajasthan, needed to supply drinking water throughout the region by drawing water from Chambal River located at a distance of 85.25 Kms.

The needs of the urban and rural poor would be met through water from standpipes supplied at a modest charge. A "mission mode" has been adopted in Rajasthan for providing piped water supply connections to about 98 lakh households stipulated in a flagship Central scheme that envisages the supply of 55 litres of water per person per day to every rural house by 2024.

In the Water segment, your company has completed more than 25,000 km of pipeline installation, 1300 MLD of WTP and 100 MLD of Desalination Water Supply (the first and largest of its kind in India) and continues to march as a leader in this sector.

Chambal - Dholpur - Bharathpur Water Supply Project.

Your Company had successfully executed a Prestigious Project of Design, Build Operate & Maintenance of Water Supply Project, for Chambal-Dholpur-Bharathpur Region in th State of Rajasthan. It comprises of 85 KM length of MS / PSC Pipeline laying including major works of head works / etc for raw water main from Sagarpada to Malla, at a total cost of around Rs. 213 Crores. This prestigious project had been successfully completed in record time and is efficiently functioning and is catering continuous drinking water to various villages in the said region.


The growing population of India is expected to cross that of China by the year end 2030. Current population of India is 130 Crores. It is a herculean task to feed this mammoth population for a developing country like India. Govt of India and different State Govts of the Union have realised this fact and focussed their vision for this.

Earlier irrigation was carried out mainly on gravity system. Now Lift Irrigation Schemes are coming up from minor to mega lift schemes. Your company also cropped up to this challenges and involved in many prestigious irrigation projects including gravity canals, dams, lift schemes, distribution systems and UG Piped disnet works. Latest technological advancement in water management system like SCADA Controls and atomisation of water distribution systems are also being implemented in the new projects.

During the Financial year 2019-20, in some of the Projects your company started feeding the water ahead of the Project completion in total, where still works are pending due to Land Acquisition and other issues. In Sripadasagar Project in Karimnagar District of Telangana your company filled all 12 major and 120 minor linked tanks in the purview with about 2700 Mcft of water lifted using 4 nos 10.5 MW pumps & 2 nos 1.5 MW pumps. This has helped to irrigate about 50000 acres of land (without completion of the distributory work) apart from fulfilling the drinking water needs in the villages enroute.

Buildings & Industrial Structures

The impact on economic growth due to lockdown necessitated by Covid-19 is a short term phenomenon. The Reserve bank of India (RBI) cut interest rates sharply to deal with the accompanying economic slowdown. These and other factors lead to estimate that affordability in the top ten cities of India has improved around 35 per cent over the past five years.

Amid COVID-19, the construction industry has been hit hard and is being challenged by many obstacles regarding contractual obligations, availability of resources, deliverables, health and safety measures, and project delays or cancellations. We do not want pandemic to create a permanent impact on the economy. India worked hard to move labour out of low-productivity farms to into higher productivity factories and then offices, It can not revel in a reverse migration of labour back to farm lands. In the past few weeks , India has been celebrating a quick recovery of its economy from the precipitous fall suffered in April and May of the year 22020-2021. The recovery is more evident since September 2021.

Your company had been more resilient than the markets in which they operate. Such a trend was also seen before the pandemic and is expected to continue post-lockdown period. The sustenance of the trend towards higher levels of result oriented objectives, would definitely keep companys position more formidable & abreast of its competitors.

A selective list of major completed works in Buildings & Industrial Structures (B&IS):

1. All India Institute of Medical Sciences ( AIIMS )-Bhubaneswar, Odisha.

Your company had successfully executed the Package-IV estate services at the prestigious All India Institute of Medical Sciences, Bhubaneswar. It is one of the apex healthcare Institutes established by the Ministry of Health & Family Welfare, Government of India under the Pradhan Mantri Swasthya Suraksha Yojna (PMSSY), to establish a centre of excellence in medical education, training, health care and research imbued with scientific culture, compassion for the sick and commitment to serve the underserved. Apart from catering the education & training to hundreds of medical students & para medical staff, at the premier institution, it is also efficiently able to provide effective medical services to the people residing in Bhubaneswar and also people living in other parts of neighboring villages in Odisha & adjacent States. Your company earned one more feather to its cap for having provided its excellent services at the premier institution & successfully completing the project in Feb2020.

2. National Institute of Biomedical Genomics ( NIBMG)

An autonomous body under the Ministry of Science and Technology, Government of india, has set up a campus on a 30 acre land area for Advanced Research work on Genomics which also include work on Human Genoms at Kalyani in West Bengal. This campus construction work comprises of Academic & Research Buildings, Hostel Buildings including hostels for overseas Research Scholars, Housing complex for Faculty and Director, VIP Hostels for international dignitaries, Dining and Recreation Centre, Substation building, other auxiliary buildings and structures complete with water supply system, Roads/Pathway, Drainage system etc. IVRCL has constructed this entire campus from conception to commissioning to the satisfaction of NIBMG and presently the institute is under operation in full swing.

In addition to the advanced research work on Genomics, the institute is presently working in analysis of RNA Sequences of 3636 SARS-COV-2 collected from 55 countries.

Construction of Main Building, Hostel Block, VIP Hostel, Faculty Housing, Dining Block, Substation, Roads & Pathways, etc. Rs 105.34 Cr have been completed and the project is under near completion stage.


Your company concentrates on Power Transmission Lines, Substations and Rural Electrification works. The central government is planning to award transmission & distribution projects worth of 1 lakh crore in a years time, thus giving a good push to the expanding electricity transmission across the country.

Your company has got 5 lac BPL connections provided, 10496 villages electrified, 2294 km of transmission line (765, 400, 220, and 132KV), 14 Nos of EHV Substations (220 KV & 132 KV) , 32000 kms of Distribution Lines (33 KV, 11 KV & LT Line) erected and 99 kms of traction and OHE works done till date. These match the industry best.

Your company has executed "Development of Power supply infrastructure distribution network including construction of 33/11 KV and 11/0.4 KV HT substation and allied electrical work in sector - 25 to 45, Khargarh Node, Navi Mumbai (phase-I)" for Rs. 108.04 Cr and the Project has been successfully put to public use, where Defect Liability Period is in progress.


Transportation is foundation stone of economic Infrastructure. Transportation infrastructure helps shape an areas economic health and quality of life. Not only the transportation system provides for mobility of people and goods, it also influences the pattern of growth and economic activity by providing access to land.

India has the second highest road network in the world, spanning over 4.7 million km carrying over 60% of the countrys total freight traffic and about 85% of the passenger traffic. However, only half of the country is paved, and less than a quarter of the national highways meet required standards. In the last three years the national Road building programs under NHAI has revived after resolving legacy problems. There is a fillip to Road building and completion is upwards of 25 km per day. EPC Cash contracts or the Hybrid Annuity Model (HAM) are now the chosen payment methods.

Indian rail network is the 4th longest and the most heavily used system in the world. The Government of India is planning for High speed rail networks and as a start the Mumbai - Ahmedabad section. With DFCC and High speed rail network the scope of work is huge. On the rail network front, the government aims to build 25,000 kilometres of new lines.

In the Airports sector the Government has brought in UDAN scheme aimed at making air travel affordable and widespread, to boost inclusive national economic development, job growth and air transport infrastructure development of all regions and states of India.

On the Transportation front, your company has completed 3402 lane km of Highways, 75 km of railway track, and 1963 lane km of highway concession projects under operation and development.

Your company continues to leverage its strong pre-qualification for bagging and executing the upcoming projects in the transportation sector.


The Mining industry in India is a major activity which contributes significantly to the economy of India. Your company has been treading carefully in the mining sector and has a prestigious ongoing project.

. Malanjkhand Underground Project, Madhya Pradesh:

This is a prestigious project with IVRCL which aims to develop an underground mine to extract 5 Million TPA of copper ore in Malanjkhand, Balaghat District, Madhya Pradesh. It involves sinking/constructing of 4 vertical shafts, 2 Declines at 1 in 7 gradients reaching up to a depth of 660m vertically including suitable equipping.. Being executed through experienced and specialist agencies, presently computerized controlled drill jumbo of M/s. Epiroc is being used for developmental drilling, for inset drilling and rock bolt drilling in shafts using latest M/s. Sandvik Commando machine, 1.7 Cum LHD of M/s. Epiroc, high speed shaft sinking techniques by umbrella drilling machines for mucking purposes with suitable mobilization & deployment remaining to be done on the project way forward in demand with the construction schedule.

The excavation of declines, drives, crosscuts, passes, raises etc. would go to a total length of 55.40 km out of which around 20 km has been completed. Physical progress of 36% and financial progress of 41% has been achieved. The rich experience with corresponding qualifications that would be acquired in this project would place your company as a very valuable/strong contender in future businesses involving any underground deep mining.

India has vast minerals potential with mining leases granted for longer durations of 50 years after MMDR act 2015. The demand for various metals and minerals will grow substantially over the coming years. The power and cement industries also aid growth in the metals and mining sector.


In the absence of any new contracts due to prevailing Corporate Insolvency Resolution Process (CIRP), IVRCL has focused towards on-hand O & M Business so as to improve on the Companys Pre-qualifications and retaining the talented Technical Manpower.

Soon after resuscitation of the Company, IVRCL shall endeavor into the new opportunities of Services & Solution across the Industry and Country.


In view of the failure of CIRP,The company is passing through Liquidation as going concern, and in wake of severe cash crunch, the projects in hand are being executed with enhanced & minutely monitoring team from Head Office. The Claims being pursued through the contractual Dispute Resolution are being negotiated for reasonable settlement, wherever possible.


IVRCL has been maintaining effective system of internal control for facilitating accurate, reliable and speedy compilation of financial information, safeguarding the assets and interests of the company and ensuring compliance with all laws and regulations, keeping the Certification of Integrated Management Systems (IMS) intact.


There have been several opportunities to participate in bidding of new projects where IVRCL has acquired exceptional skill and pre-qualifications across several sectors in the EPC domain in over last two decades, passed unavailed of non-fund based support like BG etc to participate in bid process in the wake of prevailing Liquidation process as going concern.

There is a threat of lapse of almost all the pre-qualifications during the prolonged CIRP and Liquidation as going concern processes and due to non-addition of new orders during the said periods.


IVRCL has a great repute in retention of human resource and skill improvement during changing times. As a result of this, the company could retain and kept the faith of a good number of long-serving employees with key area of expertise thereby keeping the in hand orders valid, even when the company is passing through CIRP and Liquidation as going concern.


The company has a prolonged period of CIRP and Liquidation as going concern process. However it is awaiting for successful completion and revival .

With the Governments target for becoming $ 5 Trillion Economy by 2025, the environment for Civil & Contracting companies has started looking up to be more prospective and encouraging.