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RPP Infra Projects has bagged a Rs 1,500-crore order from the Government of Gabon for the construction of 10,000 housing units over three years.
“Under this agreement, the Government shall provide 120 hectares of free land for the construction of the houses,” the company said in a filing to the Bombay Stock Exchange (BSE).
It, however, did not mention when the construction would start.
RPP Infra Projects said, as per the deal, it would get the right to utilise 20 per cent of the land for the construction of residential, commercial and institutional complexes and sell it in the market.
The Government (Gabon) would buy these units from RPP Infra if it is unable to sell it in the market over 36 months from the date of construction, the statement said.
“We are happy that from a small town in Tamil Nadu, we are able to win a multi-million euro deal internationally. RPP Infra’s vast experience, strong expertise in urban development and timely execution have been our key to winning this deal,” the company Chairman and Managing Director, Mr A. Sundaram, said.
RPP Infra Projects said that 1,500 housing units would be constructed in the first phase of the project over 70 acres of land at Rs 225-crore investment.
“The Government of Gabon has additionally offered RPP Infra various incentives such as tax sops, duty-free import of machinery, tools, construction materials and plant,” the filing said.
As on February-end, the order book of the company stood at Rs 2,225 crore. It is currently developing an integrated township project in Vallur.
Buoyed by the order, the company shares zoomed by 14.3 per cent to an intra-day high of Rs 72.25 on the BSE in the late afternoon trade.
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