Ircon International Limited (IRCON), in a Joint Venture (JV) with M/s SSNR Projects Private Limited (IRCON-SSNR JV), has been awarded a Letter of Award (LOA) for a significant project floated by Rail Vikas Nigam Limited (RVNL). As per the disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations), the total contract value is ₹872.69 crore (inclusive of GST), with IRCON's share being 70%, equivalent to ₹610.88 crore.

Project Details and Scope

The contract involves the construction of Tunnel T1 from Chainage Km 33+160 to Km 34+400 and Tunnel 2 from Chainage Km 57+400 to Km 66+040, along with ballast-less track and related formation works on the tunnel approaches. This project is part of the construction of an electrified new BG (Broad Gauge) railway line between Mangliyagaon (Indore) and Budni Stations, spanning 198 km across the Ratlam Division and Bhopal Division of Western and West Central Railways in Madhya Pradesh.

Key Details of the Project:

• Name of Awarding Entity: Rail Vikas Nigam Limited (RVNL)

• Significant Terms:

  • Construction of Tunnel T1 and Tunnel 2

  • Ballast-less track and formation works on approaches

  • Part of the Mangliyagaon-Budni electrified BG line project

• Nature of Contract: Item Rate Contract

• Entity Type: Domestic Entity

• Time Period for Execution: 40 months + 6 months for Defect Liability Period (DLP)

• Total Project Value: ₹872,69,34,516.97 (including GST)

• IRCON’s Share: ₹610,88,54,161.88 (including GST)

• JV Structure: IRCON holds 70%, and SSNR holds 30% of the project.

Execution Timeline and Project Size

The awarded project is expected to be executed over a period of 40 months, with an additional 6-month Defect Liability Period (DLP), ensuring the timely and efficient completion of all project components. The contract value, inclusive of GST, amounts to ₹872.69 crore, with IRCON’s share being ₹610.88 crore.

Promoter/Promoter Group Interest and Related Party Transactions

As disclosed by the company:

• Promoter/Promoter Group Interest: There is no interest from the promoter/promoter group or group companies in the entity awarding the contract.

• Related Party Transactions: The contract does not fall under related party transactions.

Strategic Importance and Business Impact

This project holds strategic importance for IRCON as it expands the company’s presence in the railway infrastructure sector, particularly focusing on the construction of tunnels, ballast-less tracks, and electrified broad gauge railway lines. IRCON’s proven expertise in executing large-scale infrastructure projects positions the company for successful and timely delivery of this contract.

Compliance and Transparency

The disclosure was made by Ms. Pratibha Aggarwal, Company Secretary & Compliance Officer, and has been filed with both BSE Limited (Scrip Code: 541956) and the National Stock Exchange of India Limited (NSE) (Symbol: IRCON) on March 28, 2025, at 12:44 hrs. The company remains committed to maintaining high standards of corporate governance and regulatory compliance.

Conclusion

The award of this prestigious project to IRCON-SSNR JV reaffirms IRCON International Limited’s leadership in the Indian infrastructure space, specifically in the railway sector. The successful execution of this project is expected to enhance IRCON’s growth trajectory while contributing to the development of critical railway infrastructure in Madhya Pradesh.

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