IRCON share price: Railway PSU stock gains 3% after THIS update. Do you own?

Railway construction company IRCON share price surged as much as 3.24 per cent to ₹157.95 apiece in Monday's trading session after the company secured a letter of acceptance from North Eastern Electric Power Corporation Limited (NEEPCO) for a civil works contract worth ₹458.14 crore for the Tato-I Hydro Electric project in Arunachal Pradesh.

“This is to inform that North Eastern Electric Power Corporation Limited has awarded the work to Ircon International Limited for “Package-I: construction of Civil Works on Item Rate for Tato-I Hydro Electric Project, Arunachal Pradesh, comprising of Headworks & allied works, Head Race Channel, Head race Pipe, Intake, Headrace tunnel, Surge shaft, Pressure shaft, Valve house, Power house & allied works and Infrastructure works,” the company said in an exchange filing dated May 2.

The contract, granted as part of Package I, entails the execution of civil works on an item rate basis. It encompasses a wide range of components, including headworks and related structures, head race channel and pipe, intake, headrace tunnel, surge shaft, pressure shaft, valve house, powerhouse, and other supporting infrastructure. The project duration is set at 45 months.

Details on other orders

In early April, IRCON announced it had received an order worth ₹127.80 crore from the S&T (Construction) division of the North-Western Railway. The project involves the design, manufacturing, supply, installation, testing, and commissioning of a microprocessor-based Electronic Interlocking (EI) system, which includes an integrated Block Instrument, at 20 stations in the Ajmer Division. The order is expected to be completed within 24 months.

In March this year, IRCON International, in partnership with SSNR Projects Private Limited through their joint venture (IRCON-SSNR JV), secured a significant railway infrastructure contract from Rail Vikas Nigam Ltd.

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