Tata Technologies’ Chhattisgarh ITI Project Axed

Tata Technologies has received formal communication from the Chhattisgarh state government announcing the termination of a project involving the development of 36 government Industrial Training Institutes (ITIs). 

The project was valued at Rs 1,188.36 crore and initiated last year through a Memorandum of Agreement (MoA). Under the MoA, Tata Technologies was the lead industry partner responsible for upgrading the ITIs into Centers of Excellence (CoE) across the state. 

“The Company has received a letter from the Government of Chhattisgarh (“CoG”), informing the Company about closure of the Project and termination of the MoA as they are exploring alternate options to meet the Project objectives,” said Tata Technologies in its regulatory filing.

In response to the government's decision, the company has agreed to accept the termination and has begun the process of refunding the escrow amount related to the project.

The announcement comes as Tata Technologies reported a 15.4 per cent decline in its consolidated profit after tax (PAT) for the quarter ending June 2024. The company’s PAT for the quarter stood at Rs 162.03 crore, down from Rs 191.53 crore in the same period the previous year. 

The decline in profitability was due to increased expenses, which rose to Rs 1,072.33 crore, compared to Rs 1,035.42 crore in the corresponding quarter of the previous fiscal year. Despite the challenges, the company recorded a slight increase in consolidated revenue from operations, which amounted to Rs 1,268.97 crore, up from Rs 1,257.53 crore year-on-year (YoY).