Introduction to the major infrastructure contract

Hindustan Construction Company Limited HCC has announced that it has secured a large infrastructure contract from the City and Industrial Development Corporation of Maharashtra Limited CIDCO valued at approximately ₹2,917 crore.

The announcement was made through a press release dated April 24, 2026, and disclosed to both the BSE Limited and National Stock Exchange of India NSE.

This contract marks a significant addition to HCC’s order book in the water infrastructure and tunnelling segment.

Details of the CIDCO project

The project awarded by CIDCO involves the development of critical water infrastructure in the Raigad region of Maharashtra, specifically aimed at strengthening water supply for Navi Mumbai and surrounding areas.

The key components of the project include:

• Construction of a 22.21 km raw water tunnel
• Development of a 250 million litres per day MLD water treatment plant
• Design, construction, commissioning and long-term operation

The project will be executed by a joint venture between LCESPL and HCC, with HCC responsible for executing work worth approximately ₹1,100 crore.

Technical scope of the project

The infrastructure development involves complex engineering work, particularly the construction of a long-distance water tunnel.

Tunnel construction

• Length: 22.21 km
• Method: Tunnel Boring Machine TBM technology
• Purpose: Transport raw water from Kondhane Dam to treatment plant

The tunnel will carry water from Village Chochi in Karjat to the treatment facility at Village Mohope in Panvel.

TBM-based tunnelling is considered one of the most advanced methods for underground infrastructure construction, ensuring precision and reduced environmental disruption.

Water treatment plant

The second major component is a:

• 250 MLD water treatment plant
• Includes design, supply, erection, testing and commissioning

This plant will treat raw water before distribution, ensuring safe and reliable supply for urban consumption.

Long-term operation and maintenance contract

A key feature of this project is the inclusion of a Design, Build and Operate DBO model, which extends beyond construction.

HCC and its JV partner will be responsible for:

• Operation and maintenance of the facility
• Duration: 15 years
• Ensuring continuous performance and water supply reliability

This model ensures long-term engagement rather than a one-time construction contract.

Strategic importance for Navi Mumbai region

The project plays a critical role in strengthening water infrastructure for:

• Navi Mumbai
• Surrounding urban growth centres
• Industrial development zones in Raigad

CIDCO’s objective is to ensure sustainable and long-term water availability for rapidly expanding urban and industrial areas.

With increasing population and industrial demand, water infrastructure projects like this are essential for regional development.

HCC’s engineering capabilities

Hindustan Construction Company has a long history in large-scale infrastructure development in India.

According to the company’s background:

• Nearly 100 years of engineering experience
• Execution of major national infrastructure projects
• Significant contribution to hydropower, nuclear, highways and tunnelling

Major achievements include:

• 26% of India’s hydro power capacity constructed
• 60% of nuclear power generation infrastructure
• Over 4,036 lane km of highways and expressways
• More than 402 km of complex tunnelling projects
• Over 403 bridges constructed

This experience positions HCC strongly for complex projects like CIDCO’s tunnel and water treatment system.

Financial and business impact

The ₹2,917 crore contract is significant for HCC’s:

• Order book visibility
• Revenue pipeline over execution period
• Strengthening presence in water infrastructure segment

Out of the total project value, HCC’s share is approximately ₹1,100 crore, reflecting its execution responsibility within the joint venture.

Such large infrastructure contracts typically contribute to multi-year revenue recognition.

Importance of TBM technology in this project

The use of Tunnel Boring Machine TBM technology is a critical aspect of the project.

Benefits include:

• High precision tunnelling
• Reduced surface disruption
• Faster execution in long underground projects
• Improved safety in complex geological conditions

This reflects India’s increasing adoption of advanced construction technologies in infrastructure development.

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