Rs 2,762.89 Crore Order Book: Infrastructure Giant Secures New Order Worth Rs. 282.88 Crores for UPSIDA Industrial Area Development
On a year-to-date basis, the stock has declined by 29 per cent while in the last 12 months it is up by 7 per cent.
R.P.P Infra Projects Ltd. has announced that it has received a Letter of Acceptance (LOA) for a significant new project: the Development of UPSIDA Industries Area at Bharapachpera-Pilibhit, Uttar Pradesh. The contract, valued at Rs. 282.88 Crores (including GST), marks a notable achievement for the company, with the hard copy of the LOA received just yesterday.
The project, awarded by the Principal General Manager, UPSIDA Complex Kanpur, is a domestic undertaking for the development of the industrial area spanning 951.79 acres, on an EPC (Engineering, Procurement, and Construction) basis. The financial bid for this tender was opened on December 3, 2024, and the company's tendered rate of Rs. 2,39,73,07,119.00 was accepted by the competent authority. This accepted bid is notably 7.2 per cent below the sanctioned estimated amount of Rs. 2,58,33,05,085.00 (without GST) and Rs. 3,04,83,00,000.00 (with GST). An additional 18 per cent GST, amounting to Rs. 43,15,16,251.00, will be payable on the tendered amount, bringing the total approved tendered amount to Rs. 2,82,88,22,400.00 (Rupees Two Hundred Eighty Two Crore Eighty Eight Lacs Twenty Two Thousand Four Hundred Only).
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As part of the contractual requirements, RPP Infra Projects Ltd. is mandated to deposit a security money of 2.5 per cent of the tender value (with GST), which equates to Rs. 7,07,21,000.00. Additionally, a performance guarantee of 5 per cent of the tender value (with GST), amounting to Rs 14,14,41,500.00, is required. The execution of the project is slated for an 18-month period. The company must submit duly signed documents, including required affidavits, activity-wise bar charts, and copies of applicable licenses/registrations, to the UPSIDA office within 10 days from the date of the LOA.
A penalty of Rs 1,000.00 per day will be imposed if the documents are not submitted within the initial 10-day period and will continue until the contract bond is signed. Should the company fail to sign the Contract Bond due to its own fault within 30 days (which includes 10 free days and 20 penalty days), the Letter of Acceptance will automatically be withdrawn. It has also been stipulated that stamp papers for the contract must be purchased exclusively from the Kanpur Nagar District Treasury.
Share price of the RPP infra projects locked in the 2 per cent upper circuit on Friday. On a year-to-date basis, the stock has declined by 29 per cent while in the last 12 months it is up by 7 per cent.
RPP Infra Projects Limited is involved in infrastructure development, focusing on projects such as roads, bridges, buildings, irrigation, power plants, and industrial structures. The company undertakes various stages of project development, including design, engineering, procurement, and construction. Their clientele includes government agencies, public sector undertakings, and private sector companies across different sectors. The new project in Jharkhand for the supply of fabricated boiler structures aligns with their capabilities in providing structural solutions for industrial applications, particularly in the power sector.
Disclaimer: The article is for informational purposes only and not investment advice.