RITES shares rocket 16% on Rs 175 crore consultancy order from Ambedkar University

Shares of RITES rallied as much as 16% on Wednesday to its day’s high of Rs 237.05 on the BSE on Wednesday post receiving Rs 175 crore project management consultancy order from Babasaheb Bhimrao Ambedkar University (BBAU).According to a filing with the exchange, the order covers planning, design and development of infrastructural facilities and other related works in the campus of Babasaheb Bhimrao Ambedkar University (BBAU) and the order is on cost plus PMC Fee basis.

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The total project cost of Rs 175.41 crore excluding GST and including RITES Fees). The total time period by which the order(s)/ contract(s) is to be executed is 30 months for initial work or till the completion of allotted work whichever is later from the date of signing of agreement.

The contract has been awarded by a domestic entity and neither its promoter nor promoter group companies have any interest in the entity awarding the contract. The order also does not qualify as a related-party transaction. The company said that it had signed a Memorandum of Understanding (MoU) with Container Corporation of India to collaborate on Project Management Consultancy (PMC) services for logistics infrastructure development. A filing with exchange on Monday said that “RITES signed a Memorandum of Understanding (MoU) with Container Corporation of India Limited (CONCOR) to collaborate on Project Management Consultancy (PMC) services from concept to commissioning for the development and improvement of CONCOR’s terminals and establishments.”The partnership will leverage RITES’ multidisciplinary engineering and project management expertise to support the planning, design, execution and supervision of infrastructure projects undertaken for CONCOR.

These services will include feasibility studies, preparation of Detailed Project Reports, detailed engineering, architectural and structural design, project supervision, quality assurance, and construction management etc

The collaboration will support the development and improvement of infrastructure including multimodal logistics parks, inland container depots, rail-linked terminals, warehouses, railway infrastructure, administrative buildings, roads, utilities and allied facilities.

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The shares of RITES went up 18.05% in the past three months and nearly 11% in the last one month. In the past one year and two years, the shares have crashed 19.88% and 35.32% respectively.

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