Madhav Infra Projects Limited Receives Letter of Acceptance from Western Railway

In a significant development, Madhav Infra Projects Limited has announced that it has received a Letter of Acceptance (LOA) from the Office of the Deputy Chief Engineer Construction, Western Railway, for an infrastructure project related to the construction of a new BG (broad gauge) line. The contract value for this project is a substantial Rs. 264.39 crore, which includes GST. This contract is part of the Ratlam Division - Western Railway expansion, specifically for the section between Amjhera and Sardarpur (covering 18.46 kilometers).

Details of the Project

The project scope includes multiple critical components for the BG line construction, such as:

1. Earthwork & Blanketing in embankment and cutting in formation, which will ensure a stable foundation for the tracks.
2. Bridge Construction involving major and minor bridges, including RUB (Road Under Bridge) work, with steel girder installation as per the Railway’s approved designs.
3. Construction of Retaining/Boundary/Toe Walls, as well as the supply and spreading of machine crushed stone ballast.
4. Laying and Linking of BG Tracks for the main line, loop lines, and points & crossings in the section and yards. This will include the transportation of P.Way (Permanent Way) materials and the welding of rails.

This project is integral to the ongoing new BG line project between Dahod and Indore, which aims to improve railway connectivity in the region.

Contractual and Financial Details

• Contract Type: The contract is an item rate contract, meaning the pricing is based on the actual work completed.
• Timeline: The contract is expected to be completed within 18 months from the date of commencement.
• Value of the Contract: The total value of the contract is Rs. 264.39 crore (approximately Rs. 264 crore), which includes the applicable GST.

Regulatory Compliance and Disclosure

The announcement is made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring the company complies with the required disclosure norms. This disclosure also follows the specific SEBI circulars issued in July 2023, ensuring the accuracy and transparency of the company's actions.

Additionally, the announcement clarifies that there are no related party transactions involved, and no promoters or promoter groups of Madhav Infra have any interest in the entity that awarded the contract.

Conclusion

Madhav Infra Projects Limited’s successful bid for the Rs. 264 crore contract with Western Railway is a major milestone for the company. The project is crucial for the expansion of railway infrastructure in the Ratlam Division, specifically improving connectivity between Dahod and Indore. With an 18-month timeline, the company is set to play a significant role in this infrastructure development project, contributing to the modernization of India's rail network. The company's stakeholders and investors will be closely monitoring the progress of this contract, as it underscores the company's growth trajectory in the infrastructure sector.