Ashoka Buildcon Ltd has received a Letter of Acceptance (LoA) from North Eastern Railway for a Rs 290.23 crore project to upgrade electric traction power supply infrastructure in Uttar Pradesh.
The contract will be executed on an engineering, procurement and construction (EPC) basis, the company said in a regulatory filing dated October 9.
The project covers the design, supply, erection, testing and commissioning of traction substations and associated switching posts for a 2x25 kV autotransformer (AT) traction feeding system along the Gorakhpur Cantt-Chhapra Gramin section of the Varanasi Division of North Eastern Railway.
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The work is intended to upgrade the capacity of electric traction power supply installations on the railway section. The contract has a completion period of 24 months from the date of commencement.
Under the contract terms, Ashoka Buildcon will provide a performance bank guarantee equivalent to 5% of the contract price. The project also carries a defect liability period of two years. The contract value of Rs 290.23 crore includes Goods and Services Tax (GST).
The order has been awarded by a domestic entity. Ashoka Buildcon stated in its disclosure that the transaction does not involve any interest of its promoter, promoter group or group companies in the awarding entity. It also classified the contract as not being a related-party transaction.
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Ashoka Buildcon share price
Ashoka Buildcon shares closed at Rs 102.19 on October 9, up 0.78% from the previous close of Rs 101.40, according to the market data. The stock touched an intraday high of Rs 103.25 and a low of Rs 100.31.
The order adds a railway electrification and power supply project to the company's infrastructure work portfolio, with execution scheduled over the next two years.
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