Oriental Rail Infrastructure Limited, a prominent player in the Indian rail infrastructure sector, has secured a significant order from Integral Coach Factory (ICF), Chennai, part of Indian Railways. The order, valued at ₹2.46 crore, pertains to the supply and installation of 32 sets of coach chairs for ICF, marking a notable achievement for the company in the railway sector. This contract reinforces Oriental Rail Infrastructure’s growing presence in India's rail industry and its capacity to deliver high-quality infrastructure solutions.

Contract Details and Terms

The contract stipulates that Oriental Rail Infrastructure will supply 32 sets of one coach set of chairs to ICF, Chennai. The delivery is expected to be made to the Furnishing Depot/ICF by January 31, 2027. This contract is part of ICF's ongoing efforts to upgrade and modernize its fleet of coaches, ensuring better comfort and quality for passengers.

Key Payment Terms:
The payment for the contract will be made in two stages. 90% of the supply portion will be payable upon the receipt of the proof of inspection certificate and the Provisional Physical Receipt Certificate. The remaining 10% of the supply portion, along with 100% installation charges, will be settled after the receipt and acceptance of the stores by the consignee. This final payment is contingent upon the installation certificate issued by the competent authority, ensuring that all work is completed to the required standards.

Domestic Contract with ICF

The contract has been awarded by a domestic entity, as it originates from Indian Railways through ICF, Chennai. This reinforces the importance of domestic contracts for companies like Oriental Rail Infrastructure, which are focused on strengthening their position in India’s rail infrastructure market. Securing such a contract further validates the company’s expertise and capability in handling large-scale projects for the railway sector.

Contract Execution Timeline

The timeline for the completion of the contract is set for January 31, 2027, giving Oriental Rail Infrastructure sufficient time to fulfill the supply and installation requirements for the 32 coach chair sets. The company will need to ensure timely delivery and installation to meet the set deadlines and maintain its reputation in the industry.

Order Value and Consideration

The total consideration for the contract is ₹2,46,49,614.72, or approximately ₹2.46 crore, which reflects the value of both the supply and installation work. This order size positions Oriental Rail Infrastructure as a key player in the rail infrastructure supply chain, particularly in the rail coach furnishings segment.

Related Party Transactions and Interest

There is no involvement from the promoter or related parties in the awarding of this contract. Oriental Rail Infrastructure has clarified that neither the promoter group nor its group companies have any direct interest in ICF, Chennai, which awarded the contract. Additionally, the contract is not classified as a related party transaction, ensuring that the agreement was made on arm’s length terms.

Impact on Oriental Rail Infrastructure

Winning this ₹2.46 crore contract will have a positive impact on Oriental Rail Infrastructure’s financial performance, contributing to its revenue growth. The successful execution of the contract, particularly within the stipulated timeline, will also enhance the company’s credibility and reputation, potentially opening doors for future contracts in the rail infrastructure sector.

This contract marks a significant milestone for the company, showcasing its ability to handle large-scale, high-value orders from Indian Railways, which is one of the largest and most prestigious clients in the country. The focus on supply and installation of coach chairs also highlights Oriental Rail Infrastructure’s expertise in providing solutions that enhance passenger comfort in India’s railway system.

Future Outlook for Oriental Rail Infrastructure

The success of this project is expected to provide a solid foundation for Oriental Rail Infrastructure as it continues to pursue additional contracts within the rail infrastructure sector. With a growing focus on rail modernization and passenger comfort, ICF and Indian Railways are likely to offer more opportunities for companies like Oriental Rail Infrastructure in the coming years. This could potentially lead to even more lucrative orders, further solidifying the company’s position in the industry.

Conclusion

In conclusion, the contract secured by Oriental Rail Infrastructure for the supply and installation of coach chairs for ICF, Chennai, is a major achievement for the company. The ₹2.46 crore contract not only demonstrates the company’s capabilities in delivering high-quality rail infrastructure solutions but also enhances its prospects for future growth in the Indian railway sector. As the company continues to expand its portfolio, it will likely benefit from a growing number of opportunities in this vital and expanding market.

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