IRCON bags $1 billion contract

$1 billion, to Indian Railways’ PSU, IRCON International Ltd. The award of the contract was signed in the presence of Indian Railways Minister Lalu Prasad Yadav and Malaysia’s Transport Minister Datuk Ong Tee Keat in Kaula Lumpur on.

Speaking on the occasion, Yadav said that the project should be completed within four years, and would involve the construction of 34 river bridges, 107 small bridges and one 8-km-long tunnel. The first phase of the project—the work upto Sangai Gaddud—will be completed by July 2010. He said that award of this contract to IRCON was an important achievement in the bi-lateral cooperation between the two countries.

Indian Railways’ presence in Malaysia dates back to 1988, when IRCON executed the rehabilitation railway tracks from Paloh to Singapore and Slim River to Seremban. Since then, IRCON has successfully completed and commissioned 11 major railway projects, which included approximately 441 km of track rehabilitation and the construction of 200 km of new track. Besides, IRCON has held a locomotive leasing contract with Malaysian Railways for the past few years, which is being extended on a yearly basis.