Vishnusurya Projects and Infra Limited, a fast-growing infrastructure company, has achieved a major milestone by securing a ₹2,217 crore contract from the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). This prestigious order involves the development of a 60 MLD (million litres per day) sea water desalination plant at Mullakadu in Tuticorin district, Tamil Nadu.

The project, awarded on a Hybrid Annuity Model (HAM), PPP Basis, marks a significant step forward in the state’s efforts to enhance water infrastructure and ensure sustainable water supply for industries and local communities.

Details of the Project

As per the company’s regulatory filing to the National Stock Exchange of India (NSE), the contract will be executed in collaboration with consortium partners JWIL Infra Limited (JWIL) and IDE Technologies India Private Limited (IDE).

The project involves:

• 6 months of conditions precedent, followed by

• 30 months of construction, and

• 15 years of Operation & Maintenance (O&M) before transfer.

The total project cost over 15 years stands at ₹2,217 crore (inclusive of all taxes and charges).

Strategic Importance

This project is of immense importance not only for Vishnusurya Projects but also for Tamil Nadu’s water security plans. Tuticorin, being an industrial hub and a coastal region, requires sustainable water solutions. Desalination technology is seen as a long-term answer to water scarcity issues in the state.

Winning this project places Vishnusurya Projects in a strong position in the infrastructure and water management sector. It demonstrates the company’s technical capabilities, financial strength, and ability to execute large-scale projects under public-private partnership frameworks.

No Promoter or Related Party Involvement

The company clarified that there is no promoter or promoter group interest in SIPCOT, and the project does not fall under related party transactions. This ensures complete transparency and compliance with SEBI’s regulatory framework.

Financial Implications

A ₹2,217 crore contract is expected to boost the order book of Vishnusurya Projects significantly. With this contract spanning multiple years, it provides long-term revenue visibility for the company. The O&M component also ensures steady cash flows over the 15-year period, improving financial stability.

Industry Context

The desalination plant sector in India has been gaining momentum due to increasing water scarcity and rapid industrialisation. Tamil Nadu, in particular, has already invested in multiple desalination plants near Chennai and other coastal cities. This project in Tuticorin will add to the state’s capacity and reduce dependency on traditional water sources.

Globally, consortium partner IDE Technologies is recognised as one of the leaders in desalination technology, bringing valuable expertise to the project. JWIL Infra Limited, with its experience in water and wastewater infrastructure, complements the technical strength of the consortium.

Impact on Shareholders and Market Outlook

The stock of Vishnusurya Projects (NSE: VISHNUINFR) is expected to see positive sentiment following this announcement. Investors often view such large-scale contract wins as a sign of robust order inflows and long-term growth opportunities.

The announcement also reflects the company’s ability to collaborate with global leaders and execute complex infrastructure projects, which may open doors for future opportunities in the desalination and water infrastructure sector across India.

Management’s Role

The project award was announced by Mr. Vengatte Sanal Kumar, CEO & Whole-time Director of Vishnusurya Projects, who holds DIN: 07546821. His leadership, along with the management team, has been instrumental in expanding the company’s footprint in infrastructure development.

Conclusion

The ₹2,217 crore SIPCOT desalination project win positions Vishnusurya Projects as a strong player in the water infrastructure and PPP model project space. With capable consortium partners, advanced desalination technology, and strong execution capabilities, the company is expected to deliver the project successfully while strengthening its order book and long-term revenue streams.

This project aligns with India’s growing emphasis on sustainable infrastructure development and showcases Vishnusurya Projects’ commitment to contributing to the nation’s water security and industrial growth.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.