HCC Secures ₹127 Crore Contract for Bhutan Hydropower Project

Hindustan Construction Company (HCC) has secured a significant contract in the hydropower sector, bagging a ₹127 crore deal from Wangchhu Hydroelectric Power Limited (WHPL) in Bhutan for construction works on the Wangchhu Hydroelectric Project.

HCC Wins ₹127 Crore Contract for Bhutan Hydropower Project

The contract is to be completed within nine months, and the scope of work covers construction of diversion tunnels, hydromechanical gates, and cofferdams — structures critical for enabling early commencement of the project’s primary civil works.

The award followed WHPL’s technical and financial evaluation process, marking a significant milestone for HCC in the hydropower sector.

Key Aspects of the Contract

The contract adds to HCC’s longstanding footprint in Bhutan, spanning over three decades, through projects including Tala (1,020 MW), Punatsangchhu-I (1,200 MW), and Nikachhu (118 MW).

HCC has built 26 per cent of India’s installed hydropower capacity, making it a leading player in the sector.

Market Impact and Details

• HCC’s stock responded modestly to the news, trading at ₹24.14 on the NSE as of midday Friday, up 0.63 per cent from the previous close of ₹23.99.
• Traded volume stood at around 2.60 crore shares with a traded value of ₹62.97 crore, reflecting active market interest.
• The stock has gained over 26 per cent year-to-date but remains about 18.5 per cent below its 52-week high of ₹31.42.

Key Takeaways

• HCC has secured a ₹127 crore contract from WHPL for construction works on the Wangchhu Hydroelectric Project.
• The contract is to be completed within nine months and adds to HCC’s longstanding footprint in Bhutan.
• HCC has built 26 per cent of India’s installed hydropower capacity, making it a leading player in the sector.

FAQs

What is the scope of work for the contract?

The scope of work covers construction of diversion tunnels, hydromechanical gates, and cofferdams — structures critical for enabling early commencement of the project’s primary civil works.

What is the market capitalisation of HCC?

HCC currently carries a market capitalisation of approximately ₹6,331 crore.

What is the target installed hydropower capacity for Bhutan?

Bhutan is targeting 6,000 MW of installed hydropower capacity under its 13th Five-Year Plan (2024–29).

Conclusion

HCC’s win of the ₹127 crore contract from WHPL in Bhutan marks a significant milestone for the company in the hydropower sector. With its longstanding footprint in Bhutan and its expertise in hydropower projects, HCC is well-positioned to capitalize on the growing demand for infrastructure contractors in the region. As the country targets 6,000 MW of installed hydropower capacity, HCC is likely to remain a key player in the sector, making it an attractive investment opportunity for investors.