RITES Ltd terminates contract with UP State Bridge Corporation Ltd
Shares of state-owned firm RITES Ltd are in focus as the company has announced that it has ended the contract with UP State Bridge Corporation Ltd as a part of the mutual agreement.
RITES Ltd has received the Letter of Acceptance on October 28, 2024 from U.P. State Bridge Corporation Limited for "Consultancy Services for Construction Supervision of Civil Works (CSC) for Supervision, Monitoring, Quality Control, and Work Zone Safety for Construction of Bridges, Rail Over/Under Bridges, Flyovers and Elevated Roads including approaches in several districts of Uttar Pradesh.
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According to the statement issued, the company has informed that pursuant to Foreclosure Agreement between RITES and UPSBCL, it has mutually agreed for foreclosure of the Principal Agreement for the aforesaid work.
Due to interpretation issues of the certain provisions of the agreement between RITES and UPSBCL, it was difficult to continue with the execution of the Agreement under the existing terms, hence it was mutually agreed to foreclose the agreement, as per the filing said.
As per the statement of the company issued there is no impact due to foreclosure as the execution of the work was not commenced.
Shares of RITES Ltd are trading higher by 0.42% at Rs 231.43.
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