In itself, the increase is not impressive but what is material is that in 1997-98, DHDS orders (for refineries) accounted for a major chunk of the order book but in 1998-99 accounts for less than 10 per cent of the orders booked. DHDS projects were primarily the result of a Supreme Court order and hence the refineries had no option but go in for that expenditure, thus benefiting EPC contractors.

The contribution of such mandatory orders to the order book in the current year is negligible. Not only is the order book more diversified but also includes orders from municipalities. Another point to consider is that the major projects for which the company is bidding includes at least six major portsand four expressways (through the consortium route). The final result will be out this year irrespective of political scenario and if it is in the company's favour it will add Rs 2,700 crore to the order book. The positive impact on the economy (through the cascading impact on related commodities) is anybody's guess.

Already the first indication of a recovery came about through higher cement despatches in March and April on y-o-y basis. The consumption of long steel products essentially used for construction is another positive indication. The steel output may not indicate any signs of recovery but consumption because of higher imports more than make up for it. The signals clearly indicate that the recovery has started.