Shares of RITES Ltd slumped more than 3% on 2 April after the company announced terminating its contract with UP State Bridge Corporation.
According to the previous order, RITES was supposed to provide consulting services for Construction Supervision of Civil Works (CSC) in order to oversee, monitor, control quality, and ensure the safety of the work zone during the construction of flyovers, elevated roads, rail over/under bridges, bridges, and approaches in a number of Uttar Pradesh districts.
In an exchange filing, RITES said, “We would like to inform you that pursuant to the Foreclosure Agreement between RITES and UPSBCL, it has mutually agreed for foreclosure of the Principal Agreement for the aforesaid work.”
Since RITES stated that it was difficult to continue executing the agreement under the current conditions due to interpretation issues with numerous of its components, it was concluded that the agreement should be foreclosed.
The company added “No impact due to foreclosure as the execution of the work was not commenced.”
RITES Limited, a Navratna Public Sector Enterprise, is a major force in India’s transport consulting and engineering sector, offering a wide range of services and a large geographic reach.
The organization has almost 50 years of expertise and has worked on projects in over 55 countries in the Middle East, Asia, Africa, Latin America, and South America.
At 11:51 am, the shares of RITES were trading 0.83% lower at Rs 228.27 on NSE.
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