New Delhi: State-owned Rail Vikas Nigam Limited (RVNL) announced on Tuesday that it has secured a major construction contract from East Coast Railway. The project, valued at Rs 283.69 crore, is scheduled to be completed within 24 months. RVNL emerged as the lowest bidder for this contract, which involves significant construction work in Odisha.
The scope of the project includes the construction of a 3rd and 4th railway line between Jarapada and Talcher Road, as well as the development of a new line between Angul and Balram. This is part of the MCRL Inner Corridor Phase-I Doubling Project, covering 14 kilometers. The works will include completing the remaining earthworks, constructing minor and major bridges, linking railway tracks, supplying ballast, constructing signal and telecommunication buildings, level crossings, and various other tasks.
This work will be done for the Jarapada-Budhapank Project’s 3rd and 4th line and between Angul and Balram, excluding station yards.
RVNL’s Status as a Navratna Company
RVNL operates under the Ministry of Railways and was granted ‘Navratna’ status last year. This prestigious status allows the company to have greater financial autonomy. Specifically, Navratna companies can invest up to Rs 1,000 crore without needing approval from the central government.
Rail Vikas Nigam Limited was originally incorporated as a Public Sector Undertaking (PSU) on January 24, 2003. Its primary objective is to implement projects related to enhancing and expanding India’s rail infrastructure.
Strong Financial Performance and Market Growth
RVNL has shown remarkable financial growth in recent years. In 2024 alone, the company’s shares have risen by approximately 190%. Over the past 12 months, RVNL shares have seen an increase of around 205%. Despite this growth, at the time of filing this report, RVNL’s shares were trading 1.1% lower at Rs 525.65 per share.
Partnership with Delhi Metro Rail Corporation (DMRC)
In addition to this major work order from East Coast Railway, RVNL recently signed a Memorandum of Understanding (MoU) with the Delhi Metro Rail Corporation (DMRC). The two entities will collaborate as Project Service Providers on design, construction, and consultancy projects both in India and internationally. This partnership represents another important step in RVNL’s expansion into infrastructure and consultancy projects beyond its core rail operations.
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