GMR forays into railway infra

Infrastructure major GMR has forayed into the railway sector, winning a construction package of Rs 267 crore from Rail Vikas Nigam.

The group, with interests in airports, energy and highways, has won the contract along with partners, including Tata projects.

"A consortium led by GMR Infrastructure has won construction package of rail line doubling between Jhansi and Bhimsen stations in Uttar Pradesh," the Bangalore-based firm said in a statement on Tuesday.

A consortium led by the company with partners such as Tata Projects and Kalindee Rail Nirman would carry out the project, which includes construction of roadbed, bridges, track linking, outdoor S&T works, OHE (over head equipment) and general electrical works from Jhansi to Erich Road.

"The total contract is valued at approximately Rs 267 crore, of which GMR's share of work is about Rs 135 crore," the company added. Rail Vikas Nigam had issued the letter of award to GMR consortium on February 20, 2014. The project is scheduled to start from April 2 and would be completed in 42 months.

"As part of our asset light strategy, we are very happy to announce our first foray into the very promising railway construction sector. This win reflects our long term vision of building our EPC expertise in a niche segment like Railways, and will pave the way for similar projects in future," said Arun Kumar Sharma, CEO, GMR Urban Infrastructure & Highways.

GMR Infrastructure had clocked Rs 53.45 crore net profit and Rs 1,432.79 crore revenue last financial year.