RITES stock edges higher on securing Rs 454-crore turnkey contract in Karnataka

RITES stock has risen around 17 percent so far this year, outperforming Nifty's returns of 12 percent.

Shares of RITES gained on October 23 after the engineering firm announced that its previously awarded project management consultancy (PMC) contract from the Karnataka Mining Environment Restoration Corporation (KMERC) has been converted into a turnkey contract.

A turnkey contract is a contract where a contractor is responsible for the entire project, from design to construction, and the client can use the project as soon as it's finished.

"..we are pleased to inform you that the order received from Karnataka Mining Environment Restoration Corporation for the construction of Railway PFTs at Dharmapura and Susheel Nagar in Ballari District under CEPMIZ for KMERC, was earlier awarded on a Project Management Consultancy (PMC) basis has now been converted into a turnkey basis," said RITES in a stock exchange filing.

The project, valued at Rs 453.99 crore (excluding GST), involves the construction of two railway private freight terminals (PFTs) at Dharmapura and Susheel Nagar in Ballari District under the Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ) for KMERC.

It includes the project management consultancy fee and is expected to be completed within 30 months from the date of signing the agreement or the handover of the construction site.

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Earlier this month, RITES said it had received a letter of award for the supply, commissioning and one-year onsite warranty of an overhaul in-service Cape Gauge 3100 HP, diesel-electric locomotive.

The company has received this order from Tsiko Africa Logistics (Pty) Limited. The broad consideration for the order is $4.28 million (Rs 35.87 crore). The order has to be executed within six months with a one-year warranty, the company informed the bourses.

In September, the PSU emerged as the lowest bidder for a tender floated by the Uttar Pradesh State Bridge Corporation. The bid value was around Rs 60.03 crore, exclusive of taxes.

As part of the deal, RITES will offer consultancy services for the construction of civil works (CSC) for supervision, monitoring, quality control and work zone safety.

At 12:03 pm, RITES shares were trading a percent higher at Rs 294.80 on the National Stock Exchange (NSE). The stock has risen around 17 percent so far this year, outperforming Nifty's returns of 12 percent.

In the past 12 months, the counter has gained 26 percent. In comparison, Nifty rose 28 percent during this period.