CCCL to focus on public sector infra projects

Chennai: Consolidated Construction Consortium plans to focus on public sector infrastructure projects that offer the most scope for growth in the coming months, according to the company’s Chairman and CEO, Mr R. Sarabeswar.

Against the backdrop of the international economic slowdown which has also hit the domestic markets, construction and development orders were fast becoming scarce from the private sector. However, with a backlog of orders estimated at over Rs 4,250 crore, CCCL is well set to keep itself occupied over the next two years, he said.

In the recent months, public sector infrastructure projects have contributed to the business significantly.

The company has bagged an Rs 170-crore order to build over four lakh sq ft of commercial and office space for BSNL in Chennai. This is among the Rs 232 crore orders including Rs 25 crore for a sewerage treatment plant in Delhi, apart from industrial and factory buildings it has received recently.

The BSNL order involves construction of two multi-storeyed towers. CCCL would develop the complete package including the telecommunications, electrical and substation. Work on the project is expected to start early in 2009.

Construction companies will see public sector infrastructure projects offering significant growth opportunities. For instance, of its total order book, over Rs 1,500 crore is from infrastructure sector covering airports, power plants and water treatment, and the balance constitute orders for factory and buildings, he said.

Among the infrastructure projects, CCCL recently started work on the Rs 1,212-crore project for Chennai airport expansion. The company is handling it in collaboration with Herve Pomerleau International, a Canadian infrastructure company.

Orders from real estate developers in the commercial and residential segments have been scarce, he said.

CCCL is a Rs 1,400 crore company which offers integrated construction services for industrial, commercial, residential and infrastructure segments.