RITES Ltd Secures Rs. 106 Crore Maintenance Contract from RDSO
Filing Summary
RITES Ltd has secured a major order from the Research Designs and Standards Organisation (RDSO), Lucknow. The contract involves comprehensive maintenance of a dedicated test track between Gudha and Thathana Mithri stations in the Jodhpur division of NWR. The order is valued at approximately Rs. 106 Crore, excluding GST, and is set to be executed over a period of 60 months. This transaction is between a government entity and a government company, ensuring no related party transactions. The order was disclosed under Regulation 30 of SEBI’s Listing Obligations.
RITES Ltd has announced the receipt of a significant order from the Research Designs and Standards Organisation (RDSO), Lucknow. The order pertains to a comprehensive maintenance contract for a dedicated test track located between Gudha and Thathana Mithri stations in the Jodhpur division of the North Western Railway (NWR). The contract is valued at Rs. 105.69 Crore, excluding GST, and is scheduled for execution over a period of 60 months from the date of issuance of the Letter of Acceptance (LOA).
The transaction is classified as a domestic order, awarded by a domestic entity. It involves a government-to-government transaction, as RITES Ltd is a government company. Consequently, there are no related party transactions involved in this contract. The terms of the contract specify the comprehensive maintenance of the test track, ensuring adherence to the standards set by the awarding entity, RDSO.
The order was disclosed in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates the disclosure of significant events or information that may impact the securities market.
The Research Designs and Standards Organisation is a key entity under the Ministry of Railways, responsible for setting standards and conducting research for the Indian Railways. Its focus includes the development and maintenance of railway infrastructure, ensuring safety and efficiency in operations.
RITES Ltd is a government-owned engineering consultancy company specializing in transport infrastructure. It provides a range of services including consultancy, project management, and maintenance across various sectors such as railways, highways, and airports. The company prioritizes strategic partnerships and government contracts to expand its service offerings and maintain its position in the infrastructure sector.