IRCON gets ₹159-Crore arbitration claim from Conarch Associates

24 Mar 2025 , 09:07 AM

The state-owned engineering and construction firm IRCON International Limited stated that it is facing an arbitration claim of ₹158.89 Crore filed by Conarch Associates. 

As per the company’s filing with the bourses, the dispute relates to the supply and stacking of 50mm Pakur variety machine crushed track ballast for the Jaynagar-Bardibas railway project in Nepal, covering the section from “Km 34+800 to Km 52+336.”

The claims include compensation for loss of profit and goodwill, GST penalties, releasing retention money, a lien on performance bank guarantee, and payment of pending bills. The party initiated the case with the Arbitral Tribunal on March 20, 2025. IRCON also informed the bourses that the financial impact of these claims can be concluded on final adjudication.

Recently, IRCON International announced that its Joint Venture with Badri Rai and Company (BRC) has bagged an Engineering, Procurement, and Construction (EPC) contract. The said contract was worth approximately ₹1,096.17 Crore. This contract has been awarded by the Directorate of Urban Affairs, Government of Meghalaya. The contract includes construction of a new Secretariat Complex.

The company reported a 65% decline in its Q3 net profit at ₹86 Crore against ₹245 Crore in the previous corresponding quarter. The company’s revenue from operations also slipped as much as 11% to ₹2,613 Crore.

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