SEPTEMBER 1

UDAAN-RCS
RISHI AHUJA : 2018PGP096 &
SAKSHI MISRA : 2018PGP100
SHREYANSH PARAKH : 2018PGP106 L&T
SIMRAN MIGLANI : 2018PGP110
TEJAS PANCHAL : 2018PGP117

1
UDAN (Ude desh ka aam Naagrik) is the regional connectivity scheme (also known as
RCS), it is a regional airport development activity by government of India. The scheme
aims on developing a sense of empowerment in every citizen of the country by enabling
him/her to fly by making air travel affordable and widespread.

The scheme’s final objective is to boost national economic development, job growth and
development of air infra across India. The scheme is equipped with two components,
major one being the development of new airports and enhance the already existing ones
to increase the number of scheduled civilian flights to atleast 150 airports across the
nation. The second component is the critical one in terms of operational feasibility, that
is to add financially viable, capped airfare to connect more than 100 underserved and
unserved airports in small towns with each other and also with the served airports of big
cities by using VGF (wherever needed)

The above points clearly highlight that there are going to be multiple real estate
infrastructure in the line coming up and the contracts for the same can be the game
changer for the construction companies. As many as 18 airports (new) will be developed
under this scheme. For example the cost of development of the Hirasar airport to be
built on a 1025 heactare land is approximately 1400 crore. The catch here is that not all
the airports’ construction lands in the hands of just a single company. One of the biggest
winners amidst the chaos of contract auctions came out to be L&T bagging as much as
an order worth over 7000 crores for the design and construction of one of the major
airport to be built in the scheme.

The scope of the work includes: design, engineering, procurement and construction of
passenger terminal buildings. The important point here is that this is the second major
order for L&T this year under the scheme. Roads look pretty green for the construction
company.

The company’s corporate strategy lies in the process of them aiming at a well balanced
portfolio, with about 60% of the revenues aimed from the construction and business
segment and the rest from manufacturing and technology services. Besides this major
point the company also aims at growing inorganically in the core areas by setting up a
corporate center for the same.

2
L&T THE CONSTRUCTION GIANT:
Headquartered in the financial capital of India, the company is one of the largest and the
most respected companies in the Indian private sector. With a net Income of over $1.1
billion, the company boasts of over an 80 year of strong, customer focused approach
with a continuous quest for world class quality and also presents itself as someone with
unmatched qualities in the areas spanning across Technology, Engineering, Construction
and Manufacturing, and is also a leader in almost all of its major business lines.

Companies Business:

1) Construction: The Company is among the top 30 contractor’s across the world
with a business encompassed in multiple segments such as Buildings, Transport,
Heavy Civil infra, WRE, and power transmission. This is the segment which
benefits majorly from the UDAN scheme.
2) Hydrocarbon Engineering: It is dedicated to serving the oil and gas sector around
the world.
3) Power: Under this sector the company provides integrated concepts for super
critical thermal power plants.
4) Heavy Engineering: Supplying the customers for decades with custom designed
equipment’s and critical piping for industries such as fertilizer as well as to thermal
and aerospace sectors.
5) Defense: One of the most critical sector for the company where they provide
indigenous, design to delivery solution across the defense spectrum.

The list can go on and on. The other major sectors where the company has marked
its presence are: Shipbuilding, electrical and automation, mining machinery, valves
etc.

The vision of the company is to be a professionally managed Indian MNC, which is

committed to a total customer satisfaction and enhances the shareholder value. They
also aim to foster a culture of caring trust and continuous learning while meeting
every stakeholder’s expectations