RITES Limited has secured a major order for Project Management Consultancy Services for Railways Electrification of Bidar-Kalaburagi (Gulbarga), covering 110 RKM. The revised project cost is ₹154.65 Crore (excluding GST). This domestic contract underscores RITES’ expertise in infrastructure development and provides a significant boost to its order book and future revenue prospects.
RITES Limited Secures Major Consultancy Project
RITES Limited, a leading infrastructure consultancy firm, has announced the securing of a significant new order. The company will provide Project Management Consultancy Services for the crucial Railways Electrification project spanning the Bidar-Kalaburagi (Gulbarga) route, covering approximately 110 Route Kilometers (RKM). This contract was awarded by the South Central Railway.
Contract Details and Financials
The project is to be executed on a Cost Plus turnkey basis. The revised total consideration for the project is pegged at ₹154.65 Crore, which includes RITES’ fees but excludes Goods and Services Tax (GST). An earlier indication of the project cost was ₹97.96 Crore (excluding GST and RITES fees), highlighting a substantial upward revision in scope or cost estimation.
Project Classification and Significance
This significant order has been classified as awarded by a Domestic Entity. The nature of the contract is for Project Management Consultancy Services, which aligns with RITES’ core competencies. The transaction is noted as being between government entities, reinforcing the company’s strong ties and successful track record with public sector undertakings.
The project is currently designated as Ongoing, indicating that work has commenced or is expected to begin shortly. The awarding of this substantial contract is a positive development for RITES Limited, strengthening its order pipeline and contributing to its overall business growth and revenue visibility.
Source: BSE
