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

Mumbai: Vascon Engineers Limited has secured a significant ₹126.39 crore contract to construct a 300-bed general hospital in Maharashtra, as per a stock exchange filing. The contract, excluding Goods and Services Tax (GST), was awarded by the Executive Engineer of the Public Works Department (PWD), Arvi Division, Wardha-Nagpur, Maharashtra.

The project aims to bolster public healthcare infrastructure and enhance healthcare accessibility in the region. Vascon Engineers received a Letter of Intent, confirming its selection for the construction work. The company has been given the project on an "item rate basis," which means payments are made based on agreed rates for individual construction items and the actual quantity completed.

The contract is domestic and will be carried out in Maharashtra. Vascon Engineers clarified that none of its promoters, promoter group members, or group companies have any interest in the awarding authority, ensuring the contract is not a related-party transaction. The new hospital contract adds to Vascon Engineers’ project portfolio, strengthening its position in public infrastructure and healthcare construction.

Domestic government-backed construction orders typically offer companies better revenue visibility due to their fixed duration and defined terms. The order is expected to support the company’s revenue over the next two years, contingent on project execution, completion milestones, and payments received from the awarding authority.