SPML Infra Wins 1,073 Crore Water Supply Contract in Indore

SPML Infra Limited has secured a Rs. 1,073 crore contract from Indore Municipal Corporation to enhance the city's water supply infrastructure under the AMRUT 2.0 initiative. The project, including a 10-year operation and maintenance contract, aims to provide reliable access to safe drinking water for over 2 million residents of Indore, showcasing SPML Infra's expertise in integrated water infrastructure systems.

SPML Infra Limited has secured a significant Rs. 1,073 crore contract from Indore Municipal Corporation to enhance the city's water supply infrastructure under the AMRUT 2.0 initiative. The project, which includes a 10-year operation and maintenance contract, aims to provide reliable access to safe drinking water for over 2 million residents of Indore. This project underscores SPML Infra's expertise in integrated water infrastructure systems.

The AMRUT 2.0 initiative, launched by the Government of India, aims to make Indian cities "water secure" and self-reliant. The project involves the construction of a high-capacity raw water intake structure of 1,650 million litres per day (MLD), along with a raw water pumping station. Additionally, a 400 MLD water treatment plant (WTP) will be developed, featuring advanced technologies to meet strict water quality standards. The project also includes the installation of clear water booster pumping stations, extensive pumping mains, and a 22-kilometre transmission pipeline network with diameters ranging from 1200 mm to 2337 mm. An integrated 132/33 kV electrical substation will also be established to support operations.

The engineering, procurement, and construction (EPC) component of the project is scheduled for completion within 30 months from the date of contract signing, including the monsoon seasons. Subhash Sethi, chairman of SPML Infra, commented, "We are proud to be entrusted with this important project by Indore Municipal Corporation under AMRUT 2.0. Indore is amongst India's cleanest cities, and this new water infrastructure will further enhance the quality of life for its residents." [1]

This project demonstrates SPML Infra's capability to deliver large-scale, technologically advanced water supply systems, while ensuring sustainable operations through their long-term O&M commitment. The company's consolidated net profit declined 6.3% to Rs 12.12 crore on a 24.6% decrease in net sales to Rs 155.91 crore in Q1 FY26 over Q1 FY25. The scrip shed 0.87% to Rs 295.30 on the BSE. [1]

The Changi Water Reclamation Plant (WRP) Phase 3 expansion in Singapore, led by Binnies and AECOM, aims to boost water treatment capacity to 320 million gallons daily by 2060. This project exemplifies the growing importance of water resilience and sustainable infrastructure. The joint venture between Binnies Singapore and AECOM combines flood resilience expertise with global water reuse leadership, creating a scalable water resilience model. [3]

For investors, the Changi WRP Phase 3 project signals a scalable model for sustainable infrastructure. AECOM's stock, currently trading at a 12x forward P/E, offers a compelling entry point for investors seeking exposure to water resilience. RSK Group, with a P/E of 15x and a debt-to-EBITDA ratio of 1.4x, presents a more conservative but equally attractive opportunity. [3]

The SPML Infra contract is a significant milestone in the company's history, positioning it as a leader in integrated water infrastructure systems. The project's success will depend on the company's ability to execute the complex engineering and construction tasks within the stipulated timeframe, while also ensuring the long-term sustainability of the water supply system through its O&M contract.

References:
[1] https://www.business-standard.com/markets/capital-market-news/spml-infra-bags-rs-1-073-cr-water-supply-project-from-indore-municipal-corporation-125081900278_1.html
[3] https://www.ainvest.com/news/strategic-infrastructure-expansion-water-resilience-changi-wrp-phase-3-opportunity-2508/