Alstom India said Thursday the proposed joint venture (JV) of Alstom  India (AIL) and Alstom Transport S.A. (ATSA) received a Letter of Acceptance (LoA) from Dedicated Freight Corridor Corporation of India (DFCCIL) for the contract worth Rs 14.97 billion. 

As a part of contract, the joint venture will caryy out design, construction, supply, testing and commissioning of 2X25kv AC 50 Hz electrification, signalling, and telecommunication and associated works of double track railways lines under construction on a design build lump sum basis for Bhaupur-Khurja section of Eastern Dedicated Freight Corridor (System Works Contract Package -104).

Further the company said AIL had completed the sale and transfer of its transportation systems undertaking to Alstom Transport India (ATIL), as a going concern on a slump sale basis on Mar. 31, 2014.

Before the sale and transfer of the transport undertaking, AIL and ATSA had participated in the bidding process in February 2013 against which the aforesaid LoA has been issued by DFCCIL.

Pursuant to the said LoA, AIL and ATSA shall incorporate a special purpose company (SPC) for the purpose of executing the aforesaid project. The role of AIL in such SPC shall be limited only to equity participation not exceeding 5% (not exceeding Rs 80 million).  

Shares of the company declined Rs 21.25, or 2.59%, to trade at Rs 800. The total volume of shares traded was 9,613 at the BSE (11.09 a.m., Thursday).