en.Wedoany.com Reported - India's state-owned enterprise RITES Limited has expanded the scope of its railway siding contract with Neyveli Uttar Pradesh Power Limited (NUPPL), increasing the contract value from INR 1.2013 billion to INR 1.4893 billion. The revision covers comprehensive operation and maintenance of the NUPPL/GTPP railway siding, along with the wet lease of locomotives for a period of 48 months.

The overall execution period remains five years from the signing of the original memorandum of understanding on February 13, 2025, with the expanded operational tasks incorporated within this timeframe. The disclosed amount excludes Goods and Services Tax (GST). RITES has notified stock exchanges and regulatory authorities of this contract change, describing it as a service expansion rather than a new assignment.

The contract was awarded by NUPPL, a joint venture between the Indian government enterprise NLC India Limited and the Uttar Pradesh state government enterprise Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. RITES submitted the update under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and notified both the National Stock Exchange of India and the Bombay Stock Exchange.

The company stated that the transaction does not constitute a related party transaction and does not involve any promoter or group company interests. This move aims to ensure compliance with corporate governance norms and keep investors informed of the expanded scope and financial impact of the revised contract.

As part of the expanded mandate, RITES will continue to manage logistics, track maintenance, and coordination with the NUPPL operations team, leveraging its engineering and project management capabilities. The wet lease locomotive arrangement will optimize traction availability, aligning with existing power plant schedules to support the uninterrupted transport of coal and materials to the thermal power plant.