RVNL JV wins order from MP Power Transmission; stock rises

Shares of Rail Vikas Nigam Ltd (RVNL) surged more than 5 per cent during the trading session on Thursday after the company's joint venture (JV) bagged an order from Madhya Pradesh Power Transmission Co. The company informed about the same through an exchange filing on Wednesday.

"RVNL-Salasar Techno JV has received Letter of Award (LoA) from Madhya Pradesh Power Transmission Co. Jabalpur for 'construction of 132 kV & 220 kV transmission lines and associated feeder bays on total turnkey basis in Eastern MP," said the company in the exchange filing.

It is a general contract and the awarded order shall be completed within a period of 18 months, said the filing. The total cost of the project is said to be Rs 173.98 crore. RVNL has 51 per cent stake in the JV, while Salasar Techno Engineering owns the remaining 49 per cent stake in the venture.

Following the announcement, shares of Rail Vikas Nigam surged more than 5.32 per cent to Rs 234.75 during the trading session on Thursday, compared to its close at Rs 222.75 in the previous trading session. Shares of Salasar Techno rose about a per cent to Rs 19.82 at the opening tick.

State-run RVNL had announced to bag a 106.37 crore order from MP Paschim Kshetra Vidyut Vitran Company. The order is to be executed in 24 months. RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution.