New Delhi: RITES Limited, a leading public sector engineering consultancy under the Ministry of Railways, has secured a significant contract worth ₹177.23 crore from Bharat Electronics Limited (BEL). The project pertains to the design, project management consultancy (PMC), and construction of a mass manufacturing facility for BEL’s Electro-Mechanical Systems Business Unit (EM SBU) at Palasamudram, Andhra Pradesh.
Strategic Partnership to Boost Defence Manufacturing Infrastructure
RITES confirmed the receipt of a Letter of Intent (LoI) from BEL in a regulatory filing to the stock exchanges. The contract will be executed on a cost-plus basis and is scheduled for completion over a 24-month period from the date of agreement.
BEL, a Navratna Defence PSU under the Ministry of Defence, is rapidly expanding its indigenous manufacturing capacity in alignment with the Centre’s Aatmanirbhar Bharat initiative. The upcoming facility in Palasamudram is a key component of that expansion.
Scope of Work: From Design to Delivery
The scope of work entrusted to RITES includes-
- End-to-end infrastructure design and engineering
- Project management consultancy (PMC) for planning and execution
- Construction management and supervision
The facility, once completed, will augment BEL’s ability to produce high-end electro-mechanical systems for defence applications, contributing to India’s self-reliance in critical manufacturing sectors.
Clean Deal, No Related Party Interest
RITES further clarified that–
- The contract is not a related party transaction
- None of RITES’ promoter or group companies have any interest or stake in the awarding entity (BEL)
This ensures complete transparency and reinforces the government’s commitment to clean governance in public-sector procurement and project execution.
About RITES
RITES Limited is a Navratna Public Sector Enterprise known for its expertise in transport consultancy and infrastructure engineering. It plays a vital role in India’s infrastructure development with a diversified portfolio that includes railways, highways, airports, ports, and urban transport.
About BEL
Established in 1954 and headquartered in Bengaluru, Bharat Electronics Limited is a Navratna PSU under the Ministry of Defence. It specialises in designing, manufacturing, and supplying advanced electronic systems to the Indian Armed Forces. Over the decades, BEL has expanded its footprint into civilian sectors and exports, with a strong focus on R&D, innovation, and indigenisation.
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