RPP Infra secures Rs 5.13 crore order from SIPCOT
RPP Infra Projects Ltd secured a Rs 5.13 crore work order from SIPCOT for removing hard rock materials at its Shoolagiri Industrial Park. The 12-month contract requires a security deposit of Rs 25.65 lakh and stipulates a payment schedule with interest on the balance amount.
*this image is generated using AI for illustrative purposes only.
RPP Infra Projects Ltd has secured a new work order valued at ₹5.13 crore from the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT). The contract entails the removal of retrieved hard rock materials at the SIPCOT Industrial Park in Shoolagiri. The order value includes applicable Goods and Services Tax (GST).
The project is designated for a domestic entity and must be executed within 12 months from the date the site is handed over. According to the disclosure, the company is required to take over the site and commence work within 15 days of receiving the work order. The agreement will serve as the foundation for the rights of both parties involved.
Financial terms outlined in the order specify that 50% of the contract price must be remitted within 30 days of the issue of the work order. The remaining balance is to be paid in two installments of 25% each, due in the 6th and 9th months respectively, with 12% simple interest payable to SIPCOT.
Key Contract Details
| Particulars | Details |
|---|---|
| Client | State Industries Promotion Corporation of Tamil Nadu Limited |
| Project Location | SIPCOT Industrial Park, Shoolagiri |
| Order Value | ₹5.13 crore |
| Duration | 12 months from site handover |
| Nature of Work | Removal of retrieved hard rock materials |
Additionally, the company is required to furnish a security deposit of ₹25.65 lakh, equivalent to 5% of the contract value. This deposit must be provided via Demand Draft or an Irrevocable Bank Guarantee valid for the contract period plus one year, along with a claim period of three months. The company must also procure insurance for the contract value within 21 days of the work order date.
Historical Stock Returns for RPP Infra Projects
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.63% | +1.13% | -13.54% | -30.05% | -55.85% | +39.73% |
Could this SIPCOT contract serve as a stepping stone for RPP Infra Projects to secure larger infrastructure contracts within Tamil Nadu's industrial corridor expansion plans?
How might the 12% simple interest payment structure on deferred installments impact RPP Infra's working capital management and overall project profitability?
Is the Shoolagiri SIPCOT Industrial Park undergoing broader development activity that could generate additional work orders for infrastructure companies like RPP Infra?
16
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
