Ashoka Buildcon Limited Secures Contract for Gems & Jewellery Park Development in Raipur
Ashoka Buildcon Limited has received a Letter of Acceptance (LOA) from the Chhattisgarh State Industrial Development Corporation Limited (CSIDC) for a major infrastructure project. The contract involves the development of a Gems and Jewellery Park under a Public Private Partnership (PPP) mode in Raipur, Chhattisgarh.The company secured the contract as the lead member in a Joint Venture, holding a 51% stake. This agreement grants Ashoka Buildcon Limited the opportunity to execute the development project on behalf of CSIDC.
The project spans an area of 38,922 Sq. mtrs and involves developing a Gems and Jewellery Park within Raipur, Chhattisgarh. The contract is designated as a Domestic entity undertaking a domestic development project through PPP mode.
Project Terms and Financial Structure
Under the terms of the agreement awarded by CSIDC, Ashoka Buildcon Limited will receive a premium amounting to Rs. 112.40 Crore for the project.The partnership includes specific timelines and rental commitments:
- Lease Period: The site offers a lease period of 30 years, which is extendable up to 90 years.
- Construction Period: The allotted construction period for the park is five years.
- Rent: The company is obligated to pay a lease rent equivalent to 2% of Rs. 112.40 Crore, with provisions for escalation at a rate of 10% every fourth year.
The project details are summarized as follows:
| Parameter | Detail |
|---|---|
| Awarding Entity | Chhattisgarh State Industrial Development Corporation Limited (CSIDC) |
| Project Scope | Development of Gems & Jewellery Park under PPP mode in Raipur, Chhattisgarh |
| Land Area | 38,922 Sq. mtrs |
| Contract Value | Premium payment of Rs. 112.40 Crore |
| Duration | Lease Period of 30 years (extendable to 90 years) |
ASHOKA Stock Price Movement
Ashoka Buildcon Limited rallied on Friday, with shares settling at ₹123.06 after gaining 6.82%. The stock price traded within a range defined by a low of ₹116.87 and a high of ₹124.00.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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