Ashoka Buildcon Limited, in consortium with Railtel Corporation of India Limited, has received a Letter of Intent (LOI) for a significant project with the Inspector General of Registration & Controller of Stamps, Maharashtra State, Pune. The project focuses on the end-to-end modernization and operation of IT infrastructure for the Government of Maharashtra’s offices over five years. The expected financial impact for the five-year tenure is estimated to be approximately Rs. 1136.18 Crores.
Award of Letter of Intent Confirmed
Ashoka Buildcon Limited has informed the stock exchanges that its Consortium, formed alongside Railtel Corporation of India Limited, has successfully received a Letter of Intent (LOI). This LOI pertains to a bid submitted for a substantial government contract in Maharashtra.
Project Scope and Duration
The project is titled: ‘Selection of a Managed Service Provider for Modernization of Offices under Inspector General of Registration and Controller of Stamps (IGR), under the Govt. of Maharashtra’.
The core nature of this contract involves providing comprehensive, turnkey services, including end-to-end modernization, operation, and maintenance of the IT, network, cloud, and application infrastructure for the Office of the Inspector General of Registration (OIGR) in Maharashtra. This engagement is established for a fixed period of five (5) years, ending on March 19, 2032.
Financial Impact Assessment
While the official consideration value is not explicitly stated in the LOI, the expected financial impact has been calculated based on the RFP data. The accepted rate is Rs. 24.75 per scanned page (single side). Given that the average volume over the last five years, as per the RFP, was 9.18 Crore pages annually, the total expected financial impact over the five-year contract period is projected to be approximately Rs. 1136.18 Crores. The company cautions that actual figures may vary.
Insider Trading Compliance
In compliance with listing regulations, the announcement notes that the Trading Window for Designated Persons of the Company and their immediate relatives will remain closed for 48 hours following this disclosure.
Key Contract Details Summary
The following details summarize the key aspects of the award, as required by applicable guidelines:
- Awarding Entity: Inspector General of Registration & Controller of Stamps, Maharashtra State, Pune.
- Awardee Type: Domestic Entity.
- Nature of Contract: Managed Service Provider for IT Modernization (Turnkey Basis).
- Expected Completion Timeline: Through March 19, 2032.
The management confirms that neither the promoter group nor group companies have any interest in the awarding entity, and the contract will not fall within Related Party Transactions.
Source: BSE
