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RKEC Projects Ltd. ( (IN:RKEC) ) has provided an announcement.
RKEC Projects Ltd. has disclosed that a major EPC contract for constructing passenger jetty and terminal facilities at Radio Jetty near Mumbai’s Gateway of India, valued at about Rs 186.67 crore, has been terminated by the client. The client, Maharashtra Maritime Board, cited delays on the company’s part, while RKEC attributes setbacks to public interest litigations, legal proceedings and design changes that it says were beyond its control.
The company plans to pursue arbitration to recover project costs, losses and opportunity costs arising from the termination. The loss of this high-profile contract could affect RKEC’s order book and revenue visibility in the near term, though the arbitration outcome will be critical for limiting financial impact and may influence how infrastructure disputes are handled in similar government-led projects.
More about RKEC Projects Ltd.
RKEC Projects Ltd. is an Indian engineering, procurement and construction contractor operating in infrastructure projects, including marine and civil works. The company undertakes large public sector contracts such as passenger jetties and terminal facilities, positioning itself in complex infrastructure developments for government and quasi-government clients.
Average Trading Volume: 59,773
Technical Sentiment Signal: Sell
Current Market Cap: 956.5M INR
Find detailed analytics on RKEC stock on TipRanks’ Stock Analysis page.