Shares of Hindustan Construction Company (HCC) experienced a remarkable surge of 13.3% during early trading on March 21, 2023, climbing to ₹27.84 per share. This upswing followed the announcement that HCC, in collaboration with Tata Projects, secured a substantial order valued at ₹2,470 crore from Tata Power Company for a significant pumped storage initiative.
Major Contract Awarded to HCC and Tata Projects
In an official regulatory statement released on Thursday, HCC disclosed that its joint venture with Tata Projects Limited (TPL) has been awarded a ₹2,470 crore contract. This project involves the construction of the Bhivpuri Off-Stream Open-Loop Pumped Storage Project (PSP), boasting a capacity of 1,000 MW (comprised of 2×333 MW and 2×167 MW units) and located in Karjat, Maharashtra.
The responsibilities outlined in the contract encompass a variety of civil and hydro-mechanical tasks, including:
- Construction of a coffer dam
- Intake structures equipped with gates and screens at the current upper reservoir (Thokerwadi)
- Head race tunnels and penstock
- Surge and pressure shafts
- Powerhouse and tail race tunnel
- Lower intake structures and a new lower reservoir, complete with a GFRD dam
- Adit construction, roads, drains, and additional balance-of-plant (BOP) structures
HCC’s Dominance in Hydropower
HCC stands out in the hydropower sector, having contributed to nearly 26% of India’s total installed hydropower capacity. The company is actively working on five hydroelectric projects, including the 1,000 MW Tehri Pumped Storage System located in Uttarakhand.
In a noteworthy development, this latest project win marks the second significant contract for the joint venture within the week. On Monday, they secured a ₹2,191 crore agreement for the construction of an 8.65 km corridor, which includes underground tunnels and stations for the Madhya Pradesh Metro Rail Corporation Limited (MPMRCL).
HCC’s Current Engagements and Market Performance
HCC maintains a 55% stake in the joint venture, equating to approximately ₹1,205 crore. The company is also involved in the Mumbai Metro Line III, working on 4 km of twin tunnels and four stations, alongside two packages for the Chennai Metro.
As of the end of the December quarter, HCC’s order book totaled ₹9,773 crore, with hydropower projects representing the largest segment at 26%.
Recovery and Future Prospects
After facing significant selling pressure from August 2024 to February 2025, where it lost nearly 51% of its value, HCC’s stock has shown a remarkable recovery in March, appreciating by 15.21% thus far.
Despite the recent downturn, the stock has surged 460% over the past five years, showcasing HCC’s resilience and strong market position. With a legacy spanning nearly 100 years, HCC has played a pivotal role in numerous landmark infrastructure projects across India. This includes the construction of 26% of the nation’s hydropower generation capacity and 60% of its nuclear power generation, along with over 4,036 lane km of expressways, 402 km of complex tunneling, and 403 bridges as highlighted in their latest exchange filing.
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