Rs 3370.32 crore order book: Civil construction company Secures Rs 1.43 Crore Order for Elevator Installation at NNTPS

RPP Infra Projects Limited, announced on July 31, 2025, that it has been awarded a new work order. 

The significant order was awarded by GM/CONTRACTS NLC India Limited, a Government of India Enterprise. The project involves the "Supply, Erection, Testing, Commissioning and Certification of 1 Number of Kone/Johnson/OTIS/Mitsubishi/Schneider make Stretcher cum Passenger elevator (Capacity 1360 Kg and G+6 levels) for service building including Civil, Aesthetics and Electrical work in NNTPS Neyveli-607807". 

The contract has a total value of Rs 1.43 Crores (Rupees One Crore Forty-Three Lakhs). More precisely, the contract value is stated as Rs 1,43,41,000/- (Rupees One Crore Forty-Three Lakhs Forty-One Thousand only) Including applicable GST. This is a domestic order, confirmed to be awarded by a domestic entity.

The project's execution period is 18 months from the date of the Letter of Award (LOA). The LOA itself was dated July 30, 2025. A price reduction clause is stipulated, where for supply portion, erection, and commissioning, if the contractor fails to complete the works within the stipulated period, the total contract price shall be reduced by 0.5 per cent (half percent) per week of delay or part thereof, subject to a maximum of 5 per cent of the total contract price. The equipment and workmanship of the elevator are guaranteed for a period of 12 months from the date of commissioning.

For the faithful performance of the contract, a Contract Performance Bank Guarantee valued at 10 per cent of the total contract value is required. The company is also requested to furnish a fresh Bank Guarantee (e-BG preferred) for a value of Rs 7,17,050/- (5 per cent of the GOI Sanction Order of Rs 1,43,41,000 including GST) as Security Deposit (SD) within 10 (ten) days from the date of LOA. An Initial Security Deposit (ISD) of Rs 3,76,000/- from Indian Overseas Bank, Surampatti, which was valid up to October 21, 2025, is being retained. 

The contract agreement is to be executed in the prescribed proforma within 30 days from the date of LOA on a Non-Judicial Stamp paper of Rs 20/-. The LOA itself is deemed a legally enforceable contract until the formal agreement is signed. RPP Infra Projects Limited confirmed that no promoter or promoter group has any interest in the entity awarding the order, and the contract does not fall within related party transactions.

The payment terms for the project are structured in a phased manner. For Civil Structural Work, payments are released upon reaching specific structural milestones: 20 per cent at ground floor level, 20 per cent at second to fourth floor level, 20 per cent at fifth to seventh floor level, 20 per cent upon completion of ACC blocks works up to seventh floor, 10 per cent upon completion of finishing works (plus 100 per cent of embedded paint value), and the final 10 per cent upon completion of all Civil works. 

For Electrical Work and the elevator itself, 60 per cent of the total elevator portion value is released upon delivery of the elevator at the site, 20 per cent upon completion of elevator erection works, and the final 20 per cent upon successful commissioning of the elevator.

About the Company

RPP Infra Projects Limited, established in 1995, is a prominent player in the Indian construction sector. The company specialises in an array of infrastructure projects, including roads, bridges, buildings, industrial structures, power generation, irrigation systems, and waste management. With a strong focus on EPC (Engineering, Procurement, and Construction) projects, RPP Infra has a diversified portfolio encompassing highways, roads, bridges, civil construction for water management, irrigation, mass housing, and power projects. The company boasts a successful track record, having executed over 200 civil construction projects across southern states like Karnataka, Tamil Nadu, Telangana, and Andhra Pradesh.

As of July 11, 2025, the company has an order book of Rs 3,370.32 crore. Regarding finances, RPP Infra Projects has a market cap of over Rs 700 crore. The company reported amazing numbers in its Quarterly Results (Q4FY25) and annual results (FY25). The company’s shares have a PE of 11x whereas the industry PE is 25x. The stock is up 7 per cent from its 52-week low of Rs 115.50 per share.

Disclaimer: The article is for informational purposes only and not investment advice.