RVNL shares gain 2% after Rs 903 crore SJVN Thermal order win; key details

Shares of Rail Vikas Nigam Ltd (RVNL) gained as much as 2 per cent in Friday's trade after the railway PSU received a Letter of Award worth Rs 903 crore, including GST, from SJVN Thermal Private Ltd for a project in Bihar.

The RVNL stock opened at Rs 216.20 over its previous close of Rs 212 on the BSE. It touched a high of Rs 216.50, representing a gain of 2.12 per cent.

RVNL said it received the Letter of Award from SJVN Thermal Private Ltd, a wholly owned subsidiary of SJVN Ltd, for the construction of a permanent siding along with an aerial connection via track from the plant boundary to Chausa and Pawani Kamarpur in Buxar, Bihar. The project is part of the 1,320 MW Buxar Thermal Power Project.

According to the company's exchange filing, the project has an order value of Rs 903.01 crore, including GST, and is scheduled to be executed over 36 months. The contract falls within RVNL's normal course of business.

The scope involves construction of a permanent siding and an aerial track connection linking the plant boundary with Chausa and Pawani Kamarpur for the Buxar Thermal Power Project.

The order comes after RVNL last week emerged as the lowest bidder (L1) for another railway infrastructure project from East Coast Railway worth Rs 404.88 crore, including GST. That project has an execution period of 30 months.

The East Coast Railway project involves execution of roadbed, minor and major bridges, road under bridges/limited-height subways, building works, ballast supply and permanent-way linking. The scope also includes utility shifting, signalling and telecommunication works, electrification, power-supply arrangements and modification of high-tension and low-tension lines.

The said work is connected with the development of a third railway line between Nergundi-Barang and Khurda Road-Vizianagaram on the 385-km Bhadrak-Vizianagaram section.