Dilip Buildcon has emerged as the lowest bidder (L-1) for the Mine Developer and Operator (MDO) contract floated by National Aluminium Company (NALCO), a Government of India enterprise. The company will take up 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 Engineering, Procurement and Construction (EPC) scope for the first three years will include construction of the OLCC, road infrastructure, water intake facilities, and mining and transportation activities. This phase, valued at Rs 17.5 billion (excluding GST), covers the handling and movement of 7 million tonnes of bauxite.

The second phase will run for 22 years and involves mining and transporting 77 million tonnes of bauxite, amounting to Rs 32.5 billion based on the current mining charge of Rs 423 per tonne. In total, the project covers 84 million tonnes of bauxite and is valued at Rs 50 billion over a 25-year contract period.

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

Following the news, Dilip Buildcon’s shares gained nearly 1 per cent in intraday trading, while NALCO shares edged lower. Over the past five sessions, NALCO’s stock has fallen more than 3 per cent, whereas Dilip Buildcon’s shares are down around 4 per cent on the National Stock Exchange.