Dilip Buildcon has emerged as the lowest bidder (L-1) for the Mine Developer and Operator (MDO) contract floated by National Aluminium Company (NALCO), a Government of India enterprise. The company will undertake the “MDO Contract for Development and Operation of Pottangi Bauxite Mines along with Overland Conveyor Corridor (OLCC) and allied facilities,” Dilip Buildcon said in a regulatory filing.
About the project
According to the company’s filing, the Engineering, Procurement, and Construction (EPC) work in the first three years will include the OLCC, road infrastructure, water intake facilities, and mining and transportation activities. This initial phase, worth Rs 1,750 crore (excluding GST), covers the handling and transportation of 7 million tonnes of bauxite.
The second phase spans 22 years and involves mining and transportation of 77 million tonnes of bauxite, aggregating Rs 3,250 crore based on current mining charges of Rs 423 per tonne. In total, the project covers 84 million tonnes of bauxite and is valued at Rs 5,000 crore, with the full contract period spanning 25 years.
In line with SEBI regulations, the company has closed its trading window for insiders and related parties, which will remain in effect until 48 hours after the announcement becomes public.
Share Price
Following the announcement, Dilip Buildcon’s stock gained nearly 1% in intraday trade, while NALCO shares edged lower. Over the past five sessions, NALCO’s shares have declined over 3%, whereas Dilip Buildcon’s stock is down around 4% on the National Stock Exchange (NSE).
