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Shares of railway infrastructure company Rail Vikas Nigam (RVNL) continued their upward movement, hitting a new high of Rs 58.05 as they rallied 6 per cent on the BSE in Tuesday’s intra-day trade. At 11:04 am, the stock traded 5 per cent higher at Rs 57.50, as compared to 0.24 per cent decline in the S&P BSE Sensex.
Since October 20, in the past 16 trading days, the stock price of RVNL has appreciated by 62 per cent from a level of Rs 35.80, after the company announced securing multiple orders. In the past three months, the stock price of RVNL has zoomed 90 per cent, as compared to 3 per cent gain in the Sensex.
RVNL, it’s subsidiary and joint ventures are engaged in the business of implementing various types of rail infrastructure projects assigned by Ministry of Railway (MoR) including doubling (including 3rd/4th lines), gauge conversion, new lines, railway electrification, major bridges, workshops, production units and sharing of freight revenue with railways as per the concession agreement entered into with MoR.
On November 11, RVNL announced that the company has been declared successful bidder in an International project in Maldives named as Development of UTF (Uthuru Thila Falhu- Island) Harbour. This is a strategic project of Government of India and the estimated project cost is approximately Rs 1544.60 crore.
Earlier on November 4, the company said that it was awarded a contract worth of Rs 137.55 crore for increasing speed potential to 160 KMPH in Pradhankhanta – Bandhua section of Dhanbad Division under East Central Railway.
On October 20, RVNL informed that it was awarded a contract for Development of Kharicut Canal (between Naroda Smashan Gruh & Vinzol Vehla) in AMC area Package 2 & 3. Total cost of the contract was Rs 484 crore.
Earlier, on September 29, the company said that it secured a contract for construction of 4 lane highway from Samarlakota to Achampeta Junction (for 12.25 km) by National Highways Authority of India (NHAI) as a part of Kakinada port to NH – 16 connectivity in the State of Andhra Pradesh under Bharatmala Pariyojana on EPC mode at a total awarded cost of Rs 408 crore.
RVNL’s major client is the Indian Railways and other clients include various central and state government ministries, departments, and public sector undertakings. RVNL has also started participating in Metro, Highways and other infrastructure sectors through competitive bidding.
RVNL in its FY22 annual report said that the company is taking measures for ensuring cost control and timely delivery of projects, without any compromise on quality for the execution and delivery of rail infrastructure projects on a fast track basis. RVNL can play a significant role in Ministry of Railways’ efforts of raising extra-budgetary resources for project implementation, especially through the SPV route. Innovative models for project financing will also have to be explored. RVNL has also requested Ministry of Railways’ that it may be permitted to leverage its equity base to raise funds from the market as per its mandate, the company said.
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