Ashoka Buildcon Secures INR 602.2 Crore Railway Electromechanical Contract

en.Wedoany.com Reported - On August 28, Ashoka Buildcon Limited received a Letter of Acceptance (LOA) from Rail Vikas Nigam Limited (RVNL) for the tunnel electromechanical systems contract under the Rishikesh–Karnprayag new broad-gauge railway project. The contract value is INR 602.16 crore, approximately INR 6.0216 billion, inclusive of GST, with a contract duration of 30 months from the date of commencement.

This contract corresponds to Package-3 under the E-4 section, covering four railway tunnels: T-13, T-14, T-15, and T-16. Ashoka Buildcon is responsible for the supply, installation, testing, and commissioning of the related electromechanical systems, including 33/11kV and 11/0.433kV GIS substations, high- and low-voltage cables, diesel generator sets, lighting systems, UPS uninterruptible power supplies, tunnel ventilation systems, fire protection systems, and associated auxiliary works.

The contract follows a percentage-rate bidding model. Under the award terms, Ashoka Buildcon is required to submit a performance bank guarantee of INR 25.51 crore, approximately INR 255.1 million, to RVNL, with a defect liability period of 2 years for the works. The company confirmed that the order has been awarded by a domestic Indian entity, does not involve related-party transactions, and that the company's promoters, promoter group, and group companies hold no relevant interest in the awarding entity.

The Rishikesh–Karnprayag railway is located in Uttarakhand, India, spanning approximately 125 kilometers. It is a new single-line electrified broad-gauge railway, planned to include 19 tunnels, 19 major railway bridges, and 12 new stations. A significant portion of the route passes through mountainous terrain, with tunnel works accounting for a high proportion; therefore, systems such as power supply and distribution, ventilation, fire protection, lighting, and emergency power are being implemented under separate contract packages.

The contract secured by Ashoka Buildcon covers only the electromechanical systems and related works for the four tunnels from T-13 to T-16, and does not encompass the entire Rishikesh–Karnprayag railway project. The company filed an order announcement with the stock exchange on August 29, confirming receipt of the LOA from RVNL on August 28.