Mumbai, July 2 -- RITES Limited has expanded the scope of its railway siding contract with Neyveli Uttar Pradesh Power Limited (NUPPL), increasing the contract value to Rs1,489.3 million (mn) from Rs1,201.3 million (mn). The revision covers comprehensive operation and maintenance of the NUPPL/GTPP railway siding and includes hiring of locomotives on a wet-lease basis. The locomotive hire is for a period of 48 months and forms part of the extended operational scope under the agreement.

The overall execution period remains five years from the original Memorandum of Understanding dated 13 February 2025, with the extended operational tasks incorporated within that timeframe. The disclosed figures are exclusive of GST. RITES notified stock exchanges and regulatory authorities of the enhancement and described the change as an expansion of services rather than a new assignment.

The contract was awarded by Neyveli Uttar Pradesh Power Limited, a joint venture between NLC India Limited, a Government of India enterprise, and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, a Government of Uttar Pradesh enterprise. RITES submitted the update under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and informed the National Stock Exchange of India Limited and BSE Limited.

The company has stated that the transaction does not constitute a related party transaction and does not involve any promoter or group company interest. The clarification is intended to ensure compliance with corporate governance norms and to keep investors informed about the enlarged scope and the financial implications of the revised contract value.

RITES will continue to manage logistics, track maintenance and coordination with NUPPL operational teams as part of the widened mandate, utilising its engineering and project management capabilities. The wet-lease locomotive arrangement will streamline traction availability and align with existing plant schedules, supporting uninterrupted coal and material movement to the thermal plant.

Published by HT Digital Content Services with permission from Construction World.