Rs 1,878.04 Crore Order Book: Infrastructure Giant Secures Rs 125.92 Crore Civil Works Contract in Pune
DSIJ Intelligence-2 / 20 Oct 2025/ Categories: Mindshare, Trending
On a year-to-date basis, the stock has declined by 37 per cent, while in the last 5 years it is up by 213 per cent.
RPP Infra Projects Ltd has announced the receipt of a new civil Construction contract worth Rs 125.92 crore for work in Pune, Maharashtra. The company informed the stock exchanges on October 19, 2025, that it received the Letter of Acceptance (LOA) from the Defence Research and Development Organisation (DRDO) Office on October 18, 2025.
The project involves the “Provision of Civil Works for Construction of Office Cum Training Building and Residential Accommodation for officers and staff of the National Academy of Defence Financial Management (NADFM) Pune.” The work was awarded by the Chief Construction Engineer (R&D)W Pune, acting on behalf of the President of India. The Letter of Intent (LOI) was issued on October 09, 2025, following approval from the Tender Committee and environmental clearance by SEIAA.
The total contract value stands at Rs 1,25,92,06,770 after a review of item rates. The execution timeline for the project is 36 months, commencing from October 24, 2025, and scheduled for completion by October 23, 2028. The commencement date is set 15 days after the issue of the LOI, and the company must sign a formal contract on or before November 08, 2025.
As per the General Conditions of Contract (GCC-2023), RPP Infra Projects Ltd must submit an Initial Security Deposit (ISD) of 2.5 per cent of the contract price within 21 days of the LOI. The total Performance Bank Guarantee (PBG) will be 7.5 per cent of the final contract value, including the ISD. The contractor will also maintain a Defect Liability Period (DLP) of 24 months from the completion date, with security instruments valid for 90 days beyond the DLP.
A Mobilisation Advance of 10 per cent of the contract price may be granted within three weeks of the agreement’s effective date, carrying a simple interest of 10 per cent per annum. Additionally, 10 per cent of the value of work done will be retained as retention money, released progressively against a bank guarantee. In case of delays, liquidated damages will apply at a rate of 0.25 per cent per week, capped at 10 per cent of the contract value.
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The project is fully funded by the Government of India under the Ministry of Defence (DRDO). RPP Infra Projects Ltd confirmed that neither the promoter group nor related entities hold any interest in the awarding authority.
Share price of the RPP infra projects jumped over 8 per cent on Monday. On a year-to-date basis, the stock has declined by 37 per cent, while in the last 5 years it is up by 213 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.