New Delhi: Engineering consultancy and transport infrastructure company RITES Limited has received a revised project estimate worth ₹729.28 crore from South Western Railway for railway electrification work in Karnataka, according to a regulatory filing with stock exchanges. The project focuses on the Mysuru–Hassan–Mangaluru corridor and the Hassan–Arsikere line, reinforcing RITES’ strategic role in India’s railway modernization initiatives.
Project Overview: Railway Electrification
The contract has been awarded on a cost-plus turnkey basis, which includes both execution expenses and RITES’ service fees. Key details of the order include:
- Project: Railway electrification of Mysuru–Hassan–Mangaluru including Hassan–Arsikere
- Awarding Authority: South Western Railway
- Project Cost: ₹729.28 crore (excluding GST, including RITES fees)
- Contract Type: Cost-plus turnkey
- Execution Status: Ongoing
The revised estimate updates a previous order received in 2021 from the Ministry of Railways, highlighting the continued expansion of railway electrification projects in southern India.
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Strategic Importance of the Project
Railway electrification is a cornerstone of India’s efforts to enhance energy efficiency, reduce carbon emissions, and cut operational costs in rail transport. Projects such as the Mysuru–Hassan–Mangaluru corridor are expected to improve connectivity, support faster passenger movement, and facilitate smoother freight operations across Karnataka and neighboring regions.
“The project not only modernizes rail infrastructure but also contributes to a greener and more efficient rail network,” analysts said.
Government-to-Government Transaction
RITES clarified that this transaction is between a government organization and a government-owned company, ensuring that it does not qualify as a related party transaction. As a Schedule ‘A’ public sector enterprise under the Ministry of Railways, RITES continues to handle critical railway infrastructure projects both domestically and internationally.
Context from Previous Orders
The current revision pertains specifically to the Mysuru–Hassan–Mangaluru corridor, updating the initial disclosure from June 28, 2021. Earlier, RITES had secured two major electrification contracts:
- Mysuru–Hassan–Mangaluru including Hassan–Arsikere: ₹461.23 crore
- Kadur–Chikmaglur and Lumding–Badarpur: ₹288.44 crore
The revised estimate of ₹729.28 crore reflects updated cost considerations for executing the Mysuru–Hassan–Mangaluru project portion under the cost-plus turnkey framework.
About RITES Limited
RITES Limited is a leading engineering consultancy and transport infrastructure company under the Ministry of Railways. It specializes in railway electrification, project management, and transport infrastructure development in India and abroad. Known for its technical expertise and strategic contributions to national projects, RITES plays a pivotal role in India’s push toward modern, energy-efficient, and sustainable railway networks.
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