Pune Ring Road Update: Bidding Completed, Afcons and GR Infra Secure Major Contracts
The bidding process for all packages of the Pune Outer Ring Road project has been completed, with Afcons Infrastructure and GR Infra emerging as the lowest bidders for the final packages. The Pune Outer Ring Road, an eight-lane, access-controlled greenfield highway, will significantly improve connectivity around the city with a design speed of 120 km/h.
Final Package Allotments:
- Afcons Infra has secured the contract for package 6.
- GR Infra has won the bids for packages 5 and 6.
These packages cover the sections between the Pune-Bengaluru highway (NH48) and Pune-Solapur highway. The Maharashtra State Road Development Corporation (MSRDC) is responsible for the project’s execution.
Project Details and Phases: The Pune Outer Ring Road is a massive infrastructure project divided into multiple phases:
- Phase 1: 29.8 km stretch from Solu to Soratwardi on the Pune-Solapur Road with an estimated cost of ₹3,523 crore.
- Phase 2: 36.73 km from Soratwadi to Valve, projected at ₹4,495 crore.
- Phase 3: 38.34 km section from Urse to Solu along Aland-Markal Road.
- Phase 4: A 68.8 km road segment completion.
The project, initially delayed due to funding challenges, gained traction in September 2021 when the Maharashtra government approved ₹26,831 crore for construction and land acquisition for the 173-km long corridor.
Afcons Infrastructure’s ₹4,787 Crore Win: Afcons Infrastructure Ltd., a part of the Shapoorji Pallonji Group, announced that it has emerged as the lowest bidder for the construction of the Pune Ring Road (East) Packages PRR E5 and E7. These packages were tendered by MSRDC and will be executed under the EPC (Engineering, Procurement, and Construction) model with a completion timeline of 36 months.
- Package PRR E5: 9.6 km stretch from Valati, Taluka Haveli (Km 72+335) to Sonori, Taluka Purandar (Km 81+900) with a project cost of ₹2,718.50 crore.
- Package PRR E7: Project cost estimated at ₹2,068.70 crore.
The total bid cost for both packages stands at ₹4,787.20 crore (excluding GST).
Company Performance and Market Impact: Afcons has secured orders worth ₹19,000 crore as of September 2024 and expects an additional ₹5,000 crore in order inflows by March 2025, exceeding its initial target of ₹20,000 crore. Its total order book now exceeds ₹34,000 crore.
Following the announcement, Afcons Infrastructure’s shares surged by 3.5% to a high of ₹496.70 on the BSE on January 14. However, the stock closed at ₹482.50, reflecting a 3.34% decline by the end of the day.
