Infrastructure major GMR, with interests in airports, energy and highways, has forayed into the railway sector, winning a construction package worth Rs 267 crore, alongwith partners including Tata projects, from Rail Vikas Nigam.
"A consortium led by GMR Infrastructure has won construction package of rail line doubling between Jhansi and Bhimsen stations in the state of Uttar Pradesh, India," the Bangalore-based firm said in a statement today.
A consortium led by the company with partners such as Tata Projects and Kalindee Rail Nirman would carry out the project which includes construction of roadbed, bridges, track linking, outdoor S&T works, OHE (Over Head Equipments) and general electrical works from Jhansi to Erich Road.
"GMR is the Lead Member of the consortium with TATA Projects & Kalindee Rail Nirman as the partner for OHE and Track works and S&T works, respectively," it said. "The total contract is valued at approximately Rs 267 crore, of which GMR's share of work is about Rs 135 crore," it added.
Rail Vikas Nigam had issued the Letter of Award to GMR consortium on Feb 20, 2014. The project is scheduled to commence from April 2 and would be completed in 42 months. "As part of our asset light strategy, we are very happy to announce our first foray into the very promising railway construction sector.
This win reflects our long term vision of building our EPC expertise in a niche segment like Railways, and will pave the way for similar projects in future," said Arun Kumar Sharma, CEO, GMR Urban Infrastructure & Highways.
GMR Infrastructure had clocked Rs 53.45 crore net profit and Rs 1,432.79 crore revenue last fiscal. However, both in the July-September and October-December quarters of the current fiscal, it had a net loss of Rs 29 crore and Rs 30.14 crore, respectively.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
