Dilip Buildcon has emerged as the lowest bidder (L-1) for the Mine Developer and Operator (MDO) contract issued by National Aluminium Company (NALCO), a Government of India enterprise. The company will execute the “MDO Contract for Development and Operation of Pottangi Bauxite Mines along with Overland Conveyor Corridor (OLCC) and allied facilities,” it said in a regulatory filing.

According to the filing, the first three years will involve Engineering, Procurement and Construction (EPC) activities covering the OLCC, road infrastructure, water intake facilities, and mining and transportation works. This initial phase, valued at Rs 17.5 billion (excluding GST), includes the handling and movement of 7 million tonnes of bauxite.

The second phase spans 22 years and will cover the mining and transportation of 77 million tonnes of bauxite, amounting to Rs 32.5 billion based on the current mining charge of Rs 423 per tonne. Altogether, the project accounts for 84 million tonnes of bauxite and carries a total value of Rs 50 billion over a 25-year period.

In compliance with SEBI regulations, the company has closed its trading window for insiders and related parties, which will remain shut until 48 hours after the announcement becomes public.

Following the disclosure, Dilip Buildcon’s shares gained nearly 1 per cent in intraday trade, while NALCO’s stock moved lower. Over the past five sessions, NALCO has fallen more than 3 per cent, whereas Dilip Buildcon’s shares have declined around 4 per cent on the National Stock Exchange.