Shares of Rail Vikas Nigam Ltd. (RVNL), a public sector undertaking in railway infrastructure, gained as much as 2% in early trading following the announcement of a substantial new contract. The company has received a Letter of Award (LoA) from SJVN Thermal Private Ltd., a subsidiary of SJVN Ltd., valued at ₹903.01 crore, including GST.
Major Infrastructure Project in Bihar
The newly secured RVNL SJVN contract involves the construction of a permanent railway siding, complete with an aerial track connection. This critical infrastructure will link the plant boundary of the 1,320 MW Buxar Thermal Power Project to Chausa and Pawani Kamarpur in Buxar, Bihar. The project is expected to be completed within 36 months and falls within RVNL's core business operations.
Recent Project Wins Boost Confidence
This significant order follows another recent success for RVNL. Just last week, the company was identified as the lowest bidder (L1) for a railway infrastructure project from East Coast Railway, valued at ₹404.88 crore, including GST. That project, with an execution period of 30 months, focuses on developing a third railway line between Nergundi-Barang and Khurda Road-Vizianagaram within the 385-km Bhadrak-Vizianagaram section.
- East Coast Railway Project Scope:
- Roadbed construction
- Minor and major bridges
- Road under bridges/limited-height subways
- Building works and ballast supply
- Permanent-way linking
- Utility shifting, signaling, and telecommunication
- Electrification and power supply arrangements
- Modification of high-tension and low-tension lines
The consistent flow of large-scale railway infrastructure projects underscores RVNL's crucial role in India's expanding rail network and its ability to secure major government contracts, contributing to its positive market performance.