The IL&FS Engineering and Construction Company Ltd has received a letter of acceptance (LoA) from Metro Link Express for Gandhinagar and Ahmedabad Company Ltd (MEGA) to construct a viaduct corridor. News of the LoA pushed its shares up by 10 per cent at the Bombay Stock Exchange (BSE) to close at Rs 69.55 in a volatile Mumbai market on Monday.
“The company has received a letter of acceptance (LoA) from Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Company Ltd... For construction of viaduct corridor from interface point with Gyaspur depot, abutment of depot to APMC metro rail station to Shreyas metro rail station,” IL&FS Engineering said in a regulatory filing.
MEGA is a special purpose vehicle (SPV) incorporated by the Gujarat government to implement the metro rail project project under the Companies Act, 1956. The total value of the project is Rs 374.64 crore. A component of the North-South Corridor for Ahmedabad Metro Rail Project Phase-I, the project is to be completed in 120 weeks from the date of issue of the LoA, the statement added.
IL&FS Engineering said that it was currently executing three metro rail projects worth more than Rs 700 crore in Bengaluru for Banglore Metro Rail Corporation, Gurgaon for second phase of Rapid Metro Rail Project (RMRG) and in Kolkata for Rail Vikas Nigam Limited (RVNL). The company is valued at Rs 842.6 crore.
