Vascon Engineers Wins ₹126.39 Crore Order, To Build 300-Bed Hospital In Maharashtra

Mumbai: Vascon Engineers Limited has received a Rs 126.39 crore order to develop a 300-bed general hospital in Maharashtra, the company said in a stock exchange filing on Wednesday.

The value of the contract does not include Goods and Services Tax (GST).

Hospital Project

The order has been awarded by the Executive Engineer, Public Works Department (PWD), Arvi Division, Wardha-Nagpur, Maharashtra.

The project involves the development of a general hospital with 300 beds. The new facility is expected to strengthen public healthcare infrastructure and increase access to hospital services in the region.

Vascon Engineers has received a Letter of Intent for the project. This confirms that the company has been selected to carry out the construction work.

Completion Timeline

The company must complete the hospital project within 24 months from the date it receives the order.

The contract has been awarded on an “item rate basis”. Under this system, payment is generally made according to the agreed rates for individual items of construction work and the actual quantity completed.

The project is a domestic contract and will be carried out in Maharashtra.

No Promoter Interest

Vascon Engineers said none of its promoters, promoter group members or group companies has any interest in the authority that awarded the project.

The company also clarified that the contract does not fall under related-party transactions. This means the order has been received from an independent government authority and is not linked to any related business entity.

Order Portfolio

The new hospital contract adds to Vascon Engineers’ project portfolio and strengthens its presence in the public infrastructure and healthcare construction segments.

Government-backed construction orders usually offer companies better revenue visibility, as the work is carried out over a fixed period and according to defined terms.

The latest order could support the company’s revenue over the next two years as construction work progresses.

However, the actual financial contribution will depend on project execution, completion milestones and payments received from the awarding authority.