New Delhi: RITES Limited has announced an important update to its contract with Neyveli Uttar Pradesh Power Limited, increasing the total contract value to ₹148.93 crore (excluding GST). The revised agreement expands the scope of work to include locomotive hiring on a wet-lease basis for railway operations at the NUPPL thermal power project.
The development was disclosed by RITES to stock exchanges as a continuation of its earlier announcement made on February 13, 2025.
Revised Scope Includes Railway Siding O&M and Locomotive Wet-Lease
Under the amended agreement, RITES will now undertake:
- Comprehensive operation and maintenance (O&M) of the NUPPL/GTPP Railway Siding
- Hiring of locomotives on a wet-lease basis
- In-plant movement of railway rakes
- Shunting operations within the railway siding premises
The locomotive wet-lease arrangement has been incorporated to ensure smooth railway logistics and efficient handling of coal and freight movement at the power plant.
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Locomotive Hiring Contract for 48 Months
According to the revised contract terms, the locomotive wet-lease service will be provided for a period of 48 months.
The inclusion of locomotive operations expands RITES’ responsibilities beyond traditional railway siding maintenance, making it a more comprehensive logistics and operational partner for NUPPL.
Contract Value Increased by Nearly ₹28.8 Crore
With the addition of the locomotive leasing component, the contract value has been enhanced significantly.
Key Financial Highlights
- Original contract value: ₹120.13 crore
- Revised contract value: ₹148.93 crore
- Increase in order value: Approximately ₹28.8 crore
- GST: Excluded from the contract value
The enhanced order size strengthens RITES’ order book and reflects the company’s growing presence in railway infrastructure and logistics services.
Contract Duration Remains Five Years
The overall tenure of the contract remains unchanged.
The agreement will continue to be valid for five years from the date of the original Memorandum of Understanding (MoU) signed on February 13, 2025.
This long-term engagement is expected to provide stable revenue visibility for RITES while supporting efficient rail operations at the power generation facility.
About NUPPL
Neyveli Uttar Pradesh Power Limited is a joint venture between:
- NLC India Limited
- Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited
The company operates thermal power generation assets and relies heavily on efficient rail logistics for fuel transportation and plant operations.
Regulatory Compliance and Disclosure
RITES informed both the National Stock Exchange of India and BSE Limited about the contract revision under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company clarified that:
- The transaction is not a related-party transaction.
- No promoter or promoter group has any interest in the contract.
- The contract has been awarded by a domestic entity.
Strategic Significance for RITES
The expanded contract demonstrates RITES’ capability to deliver integrated railway operations, maintenance, and logistics solutions. By adding locomotive wet-lease services to its portfolio, the company is strengthening its role in supporting industrial and power-sector transportation infrastructure across India.
The order enhancement also reflects increasing demand for specialized railway operational services in the country’s energy and infrastructure sectors.
About RITES Limited
RITES Limited is a leading Public Sector Undertaking (PSU) under the Ministry of Railways, Government of India. It specializes in transport infrastructure, offering services in railway engineering, rolling stock export, project management, and consultancy across more than 50 countries. Known for its expertise in turnkey solutions, RITES plays a key role in promoting India’s rail technology and infrastructure capabilities worldwide.
