RITES Revises NALCO Contract Value To Rs 1188.9 Million

13 Apr 2026 CW Team

RITES has received an amendment to the Letter of Award dated 31 March 2021 for detailed engineering and project management consultancy for the construction of a railway siding at Sankerjang in Phase I for the Utkal-D coal mines of the National Aluminium Company. The assignment is on deposit mode and on a cost plus turnkey basis. The contract value has been enhanced to Rs 1188.9 million (mn) from Rs 797.3 mn. The award date remains unchanged.

The scope of work covers detailed engineering, procurement oversight and project management consultancy during the construction phase. RITES will be responsible for coordinating with contractors, monitoring progress against agreed timelines and ensuring compliance with technical specifications and safety standards. The consultancy is expected to involve regular reporting and interface with mine and rail authorities. The consultancy will cover design reviews, material specifications and construction sequencing.

The revision increases the financial magnitude of the engagement and will be reflected in RITES order inflows and revenue recognition in line with applicable accounting policies. Being on a cost plus turnkey basis, the arrangement provides for reimbursement of costs along with an agreed fee, which may affect cash flow patterns during execution. The company indicated that project monitoring and engineering control will remain central to delivery of the siding works. Timely approvals and coordination with NALCO and rail authorities will be essential for schedule adherence.

The amendment was communicated through a company disclosure and was first published on eight April 2026. The release noted that no Business Standard journalist was involved in its creation. Further operational details and timelines are expected to be shared by the parties as the project progresses. Stakeholders expect the enhanced scope to improve logistical connectivity for coal evacuation.

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