RITES Secures Rs.729 Crore Railway Electrification Order
Filing Summary
RITES Ltd has secured a revised order for railway electrification work from South Western Railway, valued at Rs.729 Crore, excluding GST. The project involves electrification of the Mysuru-Hassan-Mangaluru route, including Hassan-Arsikere, on a cost-plus turnkey basis. This order is part of ongoing work and is a transaction between a government entity and a government company. The project is domestic, with no related party transactions involved. RITES continues to expand its portfolio in railway infrastructure projects, reinforcing its role in India’s transportation sector.
RITES Ltd has announced the receipt of a revised order from South Western Railway for railway electrification work. The project covers the Mysuru-Hassan-Mangaluru route, including Hassan-Arsikere, and is structured on a cost-plus turnkey basis. This order follows a previous intimation dated June 28, 2021, regarding the same project.
The revised project cost is valued at Rs.729 Crore, excluding GST, which includes fees for RITES. The transaction is conducted between a government entity and a government company, ensuring no related party transactions. The financial terms are structured to cover the comprehensive electrification work required for the specified railway routes.
The scope of the project involves the complete electrification of the Mysuru-Hassan-Mangaluru railway line, including the Hassan-Arsikere section. The work is to be executed on a cost-plus turnkey basis, which typically involves the contractor being paid for all construction-related expenses plus an additional payment to allow for a profit margin. This approach ensures that RITES will manage the project comprehensively, from planning to execution.
The project is part of ongoing efforts to enhance railway infrastructure within India. The electrification of railway lines is a critical component of the Indian government’s strategy to improve efficiency and reduce carbon emissions in the transportation sector. This order reinforces RITES’ position as a key player in the railway infrastructure domain.
The timeline for the execution of this project is ongoing, indicating that work is already in progress. The project is a domestic initiative, awarded by a domestic entity, South Western Railway, which is part of the Indian Railways network. This project does not involve any international entities or collaborations.
About South Western Railway: South Western Railway is a zone of Indian Railways, responsible for rail operations in the states of Karnataka, Andhra Pradesh, Goa, and parts of Tamil Nadu. It focuses on enhancing rail connectivity and infrastructure in its operational regions.
About RITES Ltd: RITES Ltd is a government-owned engineering consultancy company specializing in the field of transport infrastructure. It provides comprehensive services from concept to commissioning in railways, highways, airports, ports, and urban transport. RITES is committed to expanding its role in infrastructure development projects both domestically and internationally.