RITES order value rises to ₹148.93 Cr from NUPPL
RITES and Neyveli Uttar Pradesh Power Limited (NUPPL) executed an amendment to the MoU to include wet-lease locomotives, enhancing the contract value to ₹148.93 Crore excluding GST for 48 months. The order involves comprehensive operation and maintenance of the NUPPL/GTPP Railway Siding.
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RITES and Neyveli Uttar Pradesh Power Limited (NUPPL) have executed an amendment to the Memorandum of Understanding (MoU) to include the hiring of locomotives on a wet-lease basis. The contract value for the comprehensive operation and maintenance of the NUPPL/GTPP Railway Siding has been enhanced to ₹148.93 Crore excluding GST. This amendment expands the scope of the original work awarded by the domestic entity.
Contract Details
The agreement involves the comprehensive Operation & Maintenance of the NUPPL/GTPP Railway Siding and the hiring of locomotives for in-plant movement and shunting of rakes. The order has been awarded by Neyveli Uttar Pradesh Power Limited, a joint venture of NLC India Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited.
| Particulars | Details |
|---|---|
| Entity awarding order | Neyveli Uttar Pradesh Power Limited (NUPPL) |
| Nature of order | Comprehensive Operation & Maintenance of NUPPL/GTPP Railway Siding and hiring of locomotives on a wet-lease basis |
| Duration | 48 months |
| Enhanced Contract Value | ₹148.93 Crore (excluding GST) |
| Previous Contract Value | ₹120.13 Crore |
Regulatory Disclosures
The company confirmed that the order falls within the domestic category and is not a related party transaction conducted at arm's length. The promoters, promoter group, or group companies do not hold any interest in the entity awarding the order. The total time period for execution remains 5 years from the original MoU entered on February 13, 2025.
Historical Stock Returns for RITES
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.30% | -1.52% | +2.42% | -13.90% | -24.29% | +53.31% |
How will the inclusion of wet-lease locomotive hiring impact RITES' profit margins compared to the original maintenance-only contract?
Does this amendment signal a strategic shift by RITES towards offering more asset-heavy leasing solutions in future O&M tenders?
Will the enhanced contract value require RITES to make additional capital expenditures for rolling stock or workforce expansion?
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