Unlocking Potential: RPP Infra’s Rs 282.88 Crore Deal with UPSIDA Promises Robust Returns!
The infrastructure major lands a new EPC contract for developing over 950 acres in Uttar Pradesh, lifting its order backlog past Rs 2,700 crore
Major Infrastructure Win for RPP Infra Projects
RPP Infra Projects Ltd. has added a major project to its growing portfolio after receiving formal confirmation of a new order worth Rs 282.88 crore. The initiative involves transforming a designated site in Bharapachpera-Pilibhit, Uttar Pradesh, into an industrial zone, commissioned by the Uttar Pradesh State Industrial Development Authority (UPSIDA). The contract, awarded on an Engineering, Procurement, and Construction (EPC) basis, represents a strategic milestone for the company in the domestic infrastructure segment.
The Letter of Acceptance (LOA), received in hard copy just a day ago, solidifies RPP Infra’s position as a key player in the industrial development space, further expanding its order book to an impressive Rs 2,762.89 crore.
Project Scope and Financial Details
The awarded project involves developing an expansive 951.79-acre industrial area. The company had submitted a financial bid of Rs 239.73 crore (excluding GST), which was approved by UPSIDA after the tender opening on December 3, 2024. This bid came in at 7.2% below the approved estimated cost of Rs 258.33 crore (pre-GST).
Including the applicable 18% Goods and Services Tax—equating to approximately ₹43.15 crore—the finalized contract value reaches ₹282.88 crore. This comprehensive figure includes all taxes and fulfills the pricing terms outlined in the tender.
Contractual Commitments and Execution Timeline
As per the terms of the agreement, RPP Infra Projects is required to furnish a security deposit equivalent to 2.5% of the total contract value, translating to approximately Rs 7.07 crore. Moreover, the contractor is required to furnish a performance security equivalent to 5% of the total contract sum, which translates to approximately ₹14.14 crore.
The development work is scheduled to be finalized over a fixed execution window spanning one and a half years. To ensure compliance, the company must submit key documents to the UPSIDA office within ten days of receiving the LOA. These include notarized affidavits, detailed activity-based bar charts, and all mandatory licenses or registrations.
Penalties for Non-Compliance and Contractual Obligations
Strict deadlines have been imposed for submitting the required documentation. Failure to submit the necessary paperwork within the stipulated ten days will attract a daily penalty of Rs 1,000. The daily fine shall remain in effect until the contract bond is formally executed and finalized. Should the firm be unable to complete the bond signing within a total window of 30 days—which comprises a 10-day grace period followed by a 20-day penal extension— the Letter of Acceptance will stand nullified automatically if the conditions remain unmet.
UPSIDA has further instructed that the required stamp papers for the contract be procured exclusively from the Kanpur Nagar District Treasury, reinforcing the official procedures tied to the agreement.
Stock Market Reaction and Share Performance
Following the announcement, shares of RPP Infra Projects hit the 2% upper circuit on Friday, indicating a positive investor response. However, on a year-to-date basis, the company’s stock has declined by 29%, reflecting broader market or sectoral challenges. Over the past 12 months, the stock has posted a 7% gain, suggesting some recovery in investor sentiment.
About RPP Infra Projects Ltd.
Based in India, RPP Infra Projects Ltd. has carved out a strong presence within the nation’s infrastructure development landscape. The company specializes in a wide array of civil construction projects including roads, bridges, buildings, irrigation systems, power generation facilities, and industrial complexes. The company delivers end-to-end infrastructure solutions, encompassing everything from initial design and technical planning to sourcing materials and on-ground implementation.
RPP Infra serves a diverse customer base that includes government bodies, state-owned organizations, and companies from the private sector. The company’s involvement in a separate project involving the supply of fabricated boiler structures in Jharkhand underlines its competencies in providing tailored structural solutions, especially for power-related infrastructure.
Final Thoughts
RPP Infra Projects Ltd.’s recent project win from UPSIDA is more than just a financial boost; it reinforces the company’s strategic positioning in India’s growing industrial infrastructure segment. With over Rs 2,700 crore in its order book and a steady stream of domestic contracts, RPP Infra appears well-placed to navigate future opportunities. The strict contract timelines, financial diligence, and required compliance underscore the project’s significance and the company’s operational rigor.
This development, coupled with the positive market response, could mark a turning point for the stock’s performance in the coming quarters.
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