Ashoka Buildcon Limited has received a Letter of Acceptance (LOA) from Rail Vikas Nigam Limited (RVNL) for a major project in Uttarakhand. The contract, valued at ₹602.16 Crore (including GST), involves the supply, erection, testing, and commissioning of electro-mechanical systems for tunnels T-13, T-14, T-15 & T-16. This project is part of the Rishikesh Karnprayag New BG Rail Line Project and has a completion period of 30 months.
Ashoka Buildcon Awarded Major Rail Project
Ashoka Buildcon Limited has announced the receipt of a significant Letter of Acceptance (LOA) from Rail Vikas Nigam Limited (RVNL) for a crucial infrastructure project. This award marks a substantial addition to the company’s order book and reaffirms its capabilities in executing large-scale electromechanical works.
Project Details and Value
The project, designated as Package E-4 under the Rishikesh Karnprayag New BG Rail Line Project in Uttarakhand, involves the supply, erection, testing, and commissioning of Electro Mechanical (E&M) Systems. These systems encompass 33/11kv & 11/0.433kv GIS Substations, HT & LT Cables, DG Sets, Lighting, UPS Systems, Ventilation Systems, and Fire Fighting Systems. The total consideration for this contract is substantial, amounting to ₹602.16 Crore, inclusive of Goods and Services Tax (GST).
Contractual Terms and Timeline
Key terms of the awarded contract include a Percentage Rate Bidding approach and the requirement to submit a Performance Bank Guarantee (BG) of ₹25.51 Crore to RVNL. The project also carries a Defect Liability Period of 2 years. The estimated completion period for this project is 30 months from the date of commencement.
Strategic Significance
This win is particularly noteworthy as it aligns with the ongoing development of critical railway infrastructure in India. The Rishikesh Karnprayag New BG Rail Line Project is a strategically important initiative aimed at improving connectivity in the hilly regions of Uttarakhand. Ashoka Buildcon’s engagement in this project highlights its role as a key player in the country’s infrastructure development landscape.
Disclosure Compliance
The intimation is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency and timely information dissemination to stakeholders. The company will remain in a trading window closure period for designated persons until 48 hours after this disclosure.
Source: BSE
