After burning cash on big projects, this Ratan Tata company is facing penalties like Rs 10 Lakh per day for…, now planning to go…
Tata Projects had recorded profits in 2020-21 but now incurring losses due to project delays and over-costing. To tackle this problem the company is now shifting focus to projects which can be completed in a shorter time span. It will help them to earn profit and revenue growth by FY26.
Tata Projects used to handle high-profile projects like India's new Parliament building, the Mumbai trans harbour link, and the upcoming Noida airport. But due to project delays and high cost the management has decided to focus on shorter-duration projects which can give profitability.
In 2024-25, Tata Projects incurred a consolidated net loss of Rs 696.57 crore that's it's consolidated net profit of Rs 81.97 crore in FY24, It's revenue also declined 1.63% to Rs 17,470.59 crore. In FY26 the company is planning to earn double-digit revenue growth.
'The game for Tata Projects would now be short-duration and fast- track projects that could be executed in a 12-24 month period,' said Vinayak Pai, managing director and chief executive of Tata Projects, in an exclusive interview to Mint. Tata Projects Challenges
Tata Projects has promised a June 30 deadline for Noida International Airport. The construction firm is trying to bring in additional resources from other sites, according to a report of the Times of India.
The company is also facing penalties for the delaying construction of the airport. Since January 1, the Uttar Pradesh government has been imposing a daily fine of Rs 10 lakh on Yamuna International Airport Private Ltd (YIAPL). YIAPL has penalized Tata Projects for construction delays.
'We are augmenting our team with workers from nearby projects. Every possible measure is being taken to complete the airport by June 30,' a Tata official said, according to a media report.
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