Mumbai: GMR Infrastructure (GIL) has received Letter of Award (LoI) for construction of 417 Km long Eastern Dedicated Freight Corridor railway project at a cost of Rs 50.80 billion on EPC (engineering, procurement and construction) basis.
GMR Group is not required to provide significant investment for the project since it is implemented on EPC basis. Earlier in November 2014, GMR (Q,N,C,F)* led consortium emerged lowest amongst five other bidders for the project through an international competitive bidding process.
The project is funded by the World Bank. The costs are estimated at INR 51 million (EUR 0.75 million). The project includes two stretches; 180 km from Mughalsarai to Karchana (near Allahabad); and 237 km from Karchana to Bhaupur (near Kanpur) in the state of Uttar Pradesh. The project involves design and construction of civil, structures and track works for double line railway on design-build lump sum basis and shall be completed in 45 months. The Eastern and Western rail freight corridor projects are expected to be game changers in the country by creating the much required rail transportation capacity. The planned eastern dedicated freight railway corridor covers about 1840 km and completion is planned by 2019.
Shares of the company gained Rs 0.1, or 0.6%, to trade at Rs 16.90. The total volume of shares traded was 49,603 at the BSE.