The LCESPL-HCC joint venture has received a ₹ 29.18 billion contract from CIDCO to construct a 22.21 km TBM tunnel and a 250 MLD water treatment plant in Raigad, with HCC’s share at ₹ 11 billion, under a 15-year DBO model.
Hindustan Construction Company Limited (HCC), through its joint venture with LCESPL, has secured a contract worth approximately ₹ 29.18 billion from the City and Industrial Development Corporation of Maharashtra Limited (CIDCO). The project entails designing and building a 22.21 km raw water tunnel using tunnel boring machine (TBM) technology, conveying water from Kondhane Dam in Karjat to a proposed 250 million liters per day (MLD) water treatment plant (WTP) in Panvel, Raigad district.
HCC’s share of the work is valued at about ₹ 11 billion. The scope also covers supply, erection, testing, commissioning, and 15 years of operation and maintenance under a design, build, and operate (DBO) framework. This development matters because Navi Mumbai and surrounding nodes face mounting water demand from rapid urbanization and industrial expansion.
The DBO model transfers long-term operational risk to the contractor, ensuring performance accountability. TBM technology minimizes surface disruption and accelerates tunneling relative to conventional methods. Industries impacted include water infrastructure, tunnel construction, municipal engineering, and real estate.
Stakeholders include CIDCO, Navi Mumbai municipal authorities, industrial zones, and property developers reliant on bulk water availability.
For investors, HCC’s specialized TBM portfolio offers margin differentiation, though geological risks persist. The 15-year O&M component provides recurring revenue, while the joint venture structure shares design and execution risk.
HCC is a Mumbai-based infrastructure construction company with expertise in hydropower, tunnels, and water projects.
CIDCO is the Maharashtra state planning authority responsible for developing Navi Mumbai and surrounding urban nodes.
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