RITES Limited has announced an enhancement in the value of its contract with Neyveli Uttar Pradesh Power Limited (NUPPL). According to reports from Business Standard, the companies have executed an amendment to the Memorandum of Understanding (MoU) for the inclusion of hiring of locomotives on a wet-lease basis for in plant movement and shunting of rakes at the NUPPL-GTPP Railway Siding. The amendment was executed to include the hiring of locomotives on a wet-lease basis for in-plant movement and shunting of rakes at the NUPPL-GTPP Railway Siding, as confirmed by RITES.
The contract value has been enhanced from ₹120.13 crore to ₹148.93 crore following the amendment. As reported by Business Standard, this represents an increase of ₹28.80 crore in the contract value. The enhanced scope includes the addition of locomotive wet-lease services to the existing work scope, with the contract value excluding GST. The new terms add locomotive hiring for a period of 48 months within the existing work scope, as confirmed by RITES. The contract is awarded by a domestic entity and is set to be executed over a period of five years from the original MoU date of February 13, 2025.
The amendment expands the scope of services provided under the original contract between RITES and NUPPL. According to Business Standard, the inclusion of wet-lease locomotive services for railway operations at the NUPPL-GTPP Railway Siding represents a significant enhancement to the existing service agreement between the two companies. The original work involved comprehensive operation and maintenance of the NUPPL/GTPP Railway Siding, and the new terms add locomotive hiring for a period of 48 months within this existing work scope, as confirmed by RITES.
RITES confirmed that the contract does not fall under related party transactions and that there is no interest from the promoter or promoter group in the entity awarding the contract. This development highlights RITES' continued collaboration with domestic enterprises and its commitment to enhancing operational capabilities through strategic partnerships. The contract is part of the existing work agreement between RITES and NUPPL, a joint venture of NLC India Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited Limited, with NUPPL being a joint venture comprising NLC India Limited, a Government of India enterprise, and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, a Government of Uttar Pradesh enterprise.
