Synopsis: RITES secures NALCO’s enhanced Rs 118.89 Cr railway siding deal at Odisha’s Utkal-D Coal Mines (+49% from Rs 79.73 Cr). Stock is up 6.7%. Will infra upgrades drive more wins?
State-run consultancy firm RITES secures a major contract revision, as NALCO nearly doubles the project value for a critical railway siding in Odisha. RITES Limited, the government-owned engineering consultancy and project management firm, has received a significant contract upgrade from National Aluminium Company Limited (NALCO). The amended Letter of Award (LOA), originally issued on March 31, 2021, now covers expanded scope for a railway siding project at Sankerjang in Odisha. The contract falls under Phase-I of the Utkal-D Coal Mines development.
RITES’s Limited’s stock, with a market capitalisation of Rs. 9,865 crores, rose Rs. 213.90, up 6.7 percent from its previous closing price of Rs. 200.41. Furthermore, the stock over the past year has given a negative return of 4.6 percent.
RITES will provide Detailed Engineering and Project Management Consultancy (PMC) services. The work involves constructing a railway siding at Sankerjang. This site is part of NALCO’s Utkal-D Coal Mines in Odisha. The project operates on a deposit mode and a cost-plus turnkey basis.
This is where things get significant. The contract value has jumped sharply. NALCO has enhanced the order from Rs 79.73 crore to Rs 118.89 crore, excluding GST. This figure includes RITES fees. That is an increase of over Rs 39 crore nearly a 49% rise from the original value.
Both RITES and NALCO are domestic public sector entities. NALCO is the awarding authority for this contract. The project is classified as a domestic order under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. RITES disclosed this update in compliance with Regulation 30 of those rules. The contract is currently ongoing, with no fixed end date specified.
Railway siding projects are critical for mining operations. They enable faster, cheaper coal movement from mines to processing or dispatch points. For RITES, this amendment strengthens its order book. It also signals continued trust from a key public sector client. NALCO’s decision to scale up the contract reflects growing infrastructure needs at the Utkal-D mines. Overall, this development highlights RITES expanding role in India’s mining and rail infrastructure space.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
