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RITES Limited has received a revision in the value of its ongoing consultancy contract with National Aluminium Company Limited (NALCO), increasing the total project cost to INR 118.89 crore from INR 79.73 crore. The project involves detailed engineering and project management consultancy for a railway siding at the Utkal-D coal mines in Odisha. The increase reflects an expanded scope of work under the existing agreement. Executed on a cost-plus basis, the project supports coal evacuation infrastructure and strengthens RITES order book visibility in the railway consultancy segment.
RITES Limited has received an upward revision in the value of its ongoing contract with National Aluminium Company Limited (NALCO) for a railway siding project, taking the total contract value to INR 118.89 crore from INR 79.73 crore. The revision comes as part of an amendment to the original Letter of Award issued earlier for consultancy services related to rail infrastructure development. Advertisement
The scope of the project includes detailed engineering and project management consultancy for the development of a railway siding at Sankerjang, linked to Phase-I of the Utkal-D coal mines in Odisha. The work is being carried out under a deposit work model on a cost-plus turnkey basis, where RITES is compensated based on project costs along with a consultancy fee.
The increase of around INR 39 crore in contract value indicates an expansion in the project scope. This is likely due to additional requirements in design, execution support, or changes in project scale that typically arise during infrastructure development, especially in mining-linked logistics projects.
RITES will continue to be responsible for planning, engineering, and supervision support for the railway siding. The project is important for improving coal evacuation from the Utkal-D mines, which supply raw material for NALCO's operations. Better rail connectivity is expected to reduce dependence on road transport and improve overall efficiency in material movement.
The company informed the stock exchanges about the development, stating that the contract is domestic in nature and does not fall under related party transactions. The cost-plus structure of the agreement ensures steady revenue flow for RITES as the project progresses.
RITES has a strong track record in railway consultancy and has been involved in several similar projects across mining and industrial sectors. Its continued engagement with NALCO reflects an ongoing working relationship between the two public sector companies. In the past, both entities have collaborated on infrastructure and logistics-related assignments.
The railway siding project also aligns with broader efforts to strengthen rail connectivity in coal-producing regions. Improved evacuation infrastructure remains a key focus area for supporting industrial production and ensuring timely supply of raw materials to downstream industries.
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