VL E-Governance begins EPC work on Rs 800 crore smart city

VL e-Governance & IT Solutions Limited has commenced engineering, procurement and construction (EPC) work for Sankalp Industrial Smart City’s 494-acre Phase I, which has an estimated EPC contract value of approximately Rs 800 crore, following its May 2025 memorandum of understanding with Ekansh Concepts.

What work has VL E-Governance started at Sankalp Industrial Smart City?

VL E-Governance has commenced work as EPC partner for the Sankalp Industrial Smart City Project under a memorandum of understanding signed with Ekansh Concepts in May 2025. The company says the engagement has started generating revenue, while management anticipates increased revenue and profitability in coming quarters as the project scales up.

The presentation does not specify VL E-Governance’s individual construction packages, billing milestones, revenue-recognition schedule or its share of the estimated Rs 800 crore EPC contract value. It does establish that the company has begun an infrastructure-project engagement alongside its e-governance and information-technology operations.

The EPC role follows lower reported expenses in the Q-2 FY2026-27 results update. Quarterly total expenses were Rs 54.64 lakh, compared with Rs 59.57 lakh in the corresponding comparative period, while half-yearly expenses were Rs 114.21 lakh versus Rs 124.83 lakh. VL E-Governance also said it remains debt-free, but did not provide a debt balance or Sankalp project-financing terms.

How large is the Sankalp Industrial Smart City project?

Sankalp Industrial Smart City’s current Phase I covers 494 acres and has an estimated EPC contract value of approximately Rs 800 crore. VL E-Governance says the project is located at the intersection of the Mumbai-Nagpur Samruddhi Mahamarg and the Delhi-Mumbai Expressway.

The disclosed development plan extends beyond the current phase, although the presentation gives neither an estimated contract value nor a construction schedule for the later stages. Phase II is described as a future expansion of 565 acres, while Phase III is a further extension of 901 acres. The three identified phases total 1,960 acres, and Phase III is 407 acres larger than the current Phase I.

The Rs 800 crore estimate applies to the 494-acre current phase rather than the full planned 1,960-acre footprint. VL E-Governance does not disclose the developer’s funding, a completion date, the duration of its EPC work, or whether a definitive EPC contract has replaced the May 2025 memorandum of understanding.

What infrastructure is planned for the 494-acre first phase?

The Sankalp project is planned to combine industrial, residential and logistics infrastructure, including rooftop solar installations, open-access and captive-power infrastructure, and a power-distribution franchisee. The Phase I features also include data centres, large-scale warehousing hubs and a residential township with smart infrastructure.

The presentation identifies renewable energy solutions, smart infrastructure and multi-sector development as focus areas for the 494-acre phase. It does not allocate the estimated Rs 800 crore EPC value among solar equipment, power systems, data centres, warehouses or the residential township, so the expected contribution of each component is not disclosed.

VL E-Governance separately identifies infrastructure and renewable energy as strategic focus areas, saying it intends to execute a smart-city infrastructure project and is exploring solar projects through joint ventures or consortiums. The Sankalp plan’s rooftop solar, captive power and open-access features align with that strategy, but the presentation does not disclose a separate solar joint venture for this project.

How does the EPC project fit VL E-Governance’s growth strategy?

VL E-Governance presents the EPC engagement as an additional prospective source of revenue and profitability while pursuing large-scale e-governance work. Its strategy update says it plans to bid for nationwide government projects, including the Unique Land Parcel Identification Number (ULPIN), Aadhaar integration with land records, the National Geospatial Knowledge-Based Land Survey of Urban Habitations and PM e-Drive Charging Station Operator (CPO) projects.

The land-record opportunity is presented with substantial remaining implementation needs. VL E-Governance says 30% of land parcels nationwide have been assigned ULPINs, leaving 70% to be assigned. It also says Aadhaar integration with land records has been completed in 2.16% of villages and identifies 6.38 lakh villages as requiring Aadhaar linking; these are opportunities under evaluation or planned participation, not contracts awarded to VL E-Governance.

VL E-Governance cites land-record work in the Philippines and six districts in Uttar Pradesh as execution credentials. It says its Philippines project dematerialised 20 million land deeds and introduced paperless digital record keeping across 168 Registrar of Deeds offices. Separately, it has signed a binding term sheet to acquire a 40% equity stake in HAL-Edgewood Technologies Private Limited, which it describes as being at an advanced stage.

Conclusion

VL E-Governance’s commenced EPC role adds an active infrastructure engagement to its e-governance strategy. The 494-acre Phase I and its approximately Rs 800 crore estimated EPC contract value provide a disclosed project scale, while the company’s Q-2 FY2026-27 expenses of Rs 54.64 lakh were lower than the Rs 59.57 lakh reported for the corresponding comparative period.

The next disclosed matters to watch are execution progress and any revenue or profitability update from the Phase I engagement as it scales. Management also plans to pursue projects in ULPIN, Aadhaar-linked land records, PM e-Drive CPO and solar power, while Phase II and Phase III remain future expansions of 565 acres and 901 acres, respectively.