Indian EMS Receives Letter of Award for INR 1.298 Billion Urban Sewerage Network Project

en.Wedoany.com Reported - On October 8, Indian municipal engineering contractor EMS Limited received a letter of award issued by the Jodhpur Municipal Corporation in Rajasthan for an urban sewerage network project, with an estimated project value of approximately INR 1.298 billion, planned to be completed within 24 months. The project is included in Phase II of India's Urban Rejuvenation and Transformation Program, mainly involving the construction of new sewage pipelines in uncovered areas, the renovation of old and damaged pipe networks, and the repair of urban sewage branch systems. The award amount includes Goods and Services Tax and excludes subsequent operation and maintenance costs.

According to the stock exchange announcement submitted by EMS, the project will redesign and rehabilitate the existing sewage collection system in Jodhpur and extend sewage facilities to areas not covered by the original pipe network. The contract scope also includes main sewage pipelines and branch sewage systems, with specific works to be implemented in accordance with the technical requirements of the municipal department. The announcement has not yet disclosed the length of newly built pipelines, pipe diameters, number of inspection wells, sewage treatment capacity, or the specific list of construction areas.

The award also includes defect liability and long-term operation and maintenance arrangements. The construction works have a 1-year defect liability period, accompanied by 10-year operation and maintenance services. The operation and maintenance costs are not included in the estimated project amount announced this time, and the relevant annual service fees and payment terms have not been separately disclosed. The company will undertake the subsequent operation and maintenance of the pipe network facilities in accordance with the contract requirements.

EMS previously disclosed to the stock exchange on August 17 that it had qualified as the lowest bidder in the Jodhpur sewage project tender. The latest announcement on October 8 confirms that the company has formally received the letter of award, and the project has moved from the tender evaluation stage to the award stage. The company confirmed in the announcement that the project was awarded by a domestic Indian municipal authority, does not involve the interests of the company's controlling shareholder or its related parties, and does not constitute a related-party transaction.