IRCON Bags ₹187 Crore Kerala Rural Industrial Park Deal

6 May 2025 , 10:39 AM

IRCON International Ltd, which is state-owned engineering and construction company, has been awarded a new work order of ₹187.08 crore (without GST) from Kerala State IT Infrastructure Ltd (KSITIL). The work order is for the development of a dedicated rural industrial park in the Thiruvananthapuram district of Kerala.

The news was released as part of a regulatory filing on May 5, 2025, in affirmation of KSITIL’s approval of the contract. Shares of IRCON International Ltd is currently trading at ₹159.10 which is a 0.25% gain than the previous close. The stock has witnessed a total of 35% dip in the last one year, and 10% gain in the last one month.

Over the last month, the Nifty Infrastructure index has recorded a 7% gain, while IRCON International outpaced the index with a 10% rise, indicating growing investor confidence in the company’s project pipeline and order wins.

The project is let out on a works contract on an item-rate basis and the completion period is expected to be 30 months from the commencement date. Civil construction and infrastructure development for the creation of an operational rural industrial park are part of the project’s scope. The project is likely to stimulate rural industrialisation in Kerala and generate new job opportunities through improvement in regional infrastructure.

In a different development, IRCON International has also obtained a letter of acceptance from North Eastern Electric Power Corporation Ltd (NEEPCO). NEEPCO’s contract value is ₹458.14 crore and is for civil construction activities for the Tato-I Hydro Electric Project in Arunachal Pradesh.

This project has been awarded under Package I and follows an item-rate contract mode of structured execution. The project involves the development of different hydro-related structures like headworks, allied works, head race channel, head race pipe, intake structure, headrace tunnel, surge shaft, pressure shaft, valve house, powerhouse, and connected civil works.

Hydroelectric project has an estimated completion period of 45 months and is part of the overall national initiative to enhance renewable energy infrastructure in India’s northeastern region.

Both projects demonstrate IRCON’s expanding presence in India’s large-scale infrastructure development in various states and its ongoing presence in key public sector projects.