Gammon India and its joint venture partner OJSC 'Mosmetrostroy' announced that company has won two construction orders worth Rs. 1947 crores from Chennai Metro Rail Limited (CMRL). Two contracts involve construction of underground stations and associated tunnels.

Gammon India said in a release that its Russian JV partner OJSC 'Mosmetrostroy' has 80 years of experience in the field has constructed 177 stations and has laid more than 300km of lines.

Under these contracts, Gammon-OJSC Mosmetrostroy will construct seven underground stations at Govt Estate, LIC building, Thousand light, Gemini, Teynampet, Chamiers road and Saidapet. In addition to this, company will also construct twin bored tunnels covering a total length of 6.4 km. Contracts that Gammon won are part of five tenders (UAA-01 to UAA-05) for design and construction of underground stations and associated tunnels.

With this deal, Gammon shares surged up nearly 7% from previous closing. Gammon said in a release "These contracts are part of the five tender packages(UAA-01 to UAA-05) floated by the CMRL for design and construction of underground stations and associated tunnels covering a total length of 18 km and 19 underground stations."

CMRL's focus on underground rail transport is an attempt to reduce traffic load on roads. This project aims at providing residents of Chennai with a fast and reliable public transport.

Chennai Metro also awarded contract of installation of overhead power cables and other equipments needed to supply traction power to Metro Trains to Siemens AG Germany and Siemens India consortium. Metro Rail said in a statement that they awarded projects to those eligible bidders who came with lowest quotations.