IRCON International Ltd., a prominent state-owned railway infrastructure company, has announced a significant new contract. The company received a Letter of Acceptance (LoA) from East Central Railway for an Engineering, Procurement, and Construction (EPC) project valued at Rs 862.46 crore.
The contract, classified as a domestic works project, focuses on crucial railway track development. It encompasses the supply of materials and the execution of track works for the construction of the third and fourth lines as part of the broader Son Nagar-Andal project. IRCON expects to complete this extensive undertaking within 365 days from the award date.
Project Scope and Details
The comprehensive contract outlines several key responsibilities for IRCON International. These include:
- Supply of ballast and permanent way (P.Way) materials.
- Laying and linking of new railway tracks.
- Other associated works specifically designed to accommodate a 32.5-tonne axle load.
The work will be executed across two vital sections within the East Central Railway network. The first is the Gomoh-Koderma section, covering railway kilometres 300.15 to 393.68, situated under the Dhanbad division. The second section is the Gaya-Son Nagar stretch, spanning railway kilometres 475.200 to 542.075, which falls under the Deen Dayal Upadhyaya division.
This substantial order also includes the provision of various P.Way materials at Gaya, directly supporting the construction of the third and fourth lines essential for the Son Nagar-Andal project.
Contract Value and Regulatory Compliance
The precise value of the contract stands at Rs 8,62,45,93,012.51, rounded to approximately Rs 862.46 crore. IRCON clarified in its regulatory filing dated October 12 that the order was awarded by a domestic entity. Furthermore, the company confirmed that this transaction does not fall under related-party transactions, and neither its promoters, promoter group, nor group companies have any interest in the entity that awarded the contract.
Following the announcement, IRCON International shares are expected to be closely monitored by investors, reflecting the market's reaction to this significant new business win for the company.