RITES has received a letter of intent (LoI) from Bharat Electronics (BEL) for the design, project management consultancy (PMC) services, and construction of a mass manufacturing facility for the EM SBU (electro-mechanical strategic business unit) at BEL’s Palasamudram Campus in Andhra Pradesh.

The work will be executed on a cost-plus basis, ensuring transparent and flexible cost management. the total estimated project cost is Rs 177.225 crore, excluding gst, and includes the PMC fees. The order is scheduled to be completed within 24 months from the date of the agreement.

This collaboration marks a strategic partnership between two major government-owned enterprises and highlights rites’ growing presence in the defence manufacturing infrastructure space. The project is expected to support BEL’s expansion goals by establishing a modern manufacturing facility aligned with national initiatives to boost indigenous production and self-reliance in defence technology.