IL&FS Engineering and Construction Company Limited has informed regarding Disclosure of material issue
IL&FSENGG · price
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IL&FS Engineering and Construction Company has lost its sub-contract for the Bhubaneswar Metro Phase-I project after the main contractor, Ceigall India Limited, received a termination notice from Delhi Metro Rail Corporation Limited (DMRC) on 25th July 2025. The work involved part design and construction of an elevated viaduct and six elevated stations (Nandan Vihar, Raghunathpur, Nandankanan Zoological Park, Barang Station, Phulapokhari, and Trisulia Square). Since the contract was on a back-to-back basis, IL&FS Engg's arrangement with Ceigall also automatically ceases. The company is now exploring legal options to claim damages, demobilization costs for plant, machinery, and manpower, and any other compensation owed to it under the sub-contract terms.
This is a negative development for shareholders — the company loses a significant infrastructure project and associated revenue. However, the company is pursuing legal remedies to recover costs, and the exact financial hit will depend on what compensation it can successfully claim.