Odisha government has cancelled a five-year contract awarded to Ricoh India for installation and maintenance of computer hardware in government and government-aided high schools.
"We wish to inform you that the company received notification yesterday of the cancellation of a five year contract in the State of Odisha with an order value of Rs 344 crore, including taxes," Ricoh India said in BSE filing.
The company was selected by the state government in February 2016 for supply, installation and commissioning of computer hardware, connected accessories, software, maintenance of equipment and provision of computer education devices in 2,000 government and government-aided high schools in Odisha for five years.
For Ricoh India, this was the second largest project after the Department of Post Digitization order in 2015.
"Whilst the formal cancellation is a disappointment for the company, plans have already factored in this eventually as, in the opinion of directors, there was significant question as to whether the contract would proceed. As a result, the cancellation of the notification does not materially impact the financial position of the company," the filing said.
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