RVNL shares rise 2% after bagging Rs 903 crore order from SJVN Thermal

Shares of Rail Vikas Nigam Limited (RVNL) gained nearly 2% on Monday to hit the day’s high of Rs 216 on NSE after the company received a Letter of Award from SJVN Thermal worth Rs 903 crore for a project in Bihar.

According to a filing with the exchange, the company said it has received the Letter of Award from SJVN Thermal Private Limited (a wholly owned subsidiary of SJVN Limited) for the construction of a permanent siding along with an aerial connection via track from the Plant Boundary to Chausa and Pawani Kamarpur at Buxar (Phase-III) in Bihar for the 1320 MW Buxar Thermal Power Project (BTPP) of STPL.

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The terms and conditions of the order are general contract conditions, and the time period for executing the order or contract is 36 months. The order or contract received is in the normal course of business of the company.

Last week, the company announced that it emerged as the Lowest Bidder (L1) for another railway infrastructure project from East Coast Railway worth Rs 404 crore, including GST. This project is to be executed in 30 months.

This East Coast Railway project involves the execution of roadbed, minor bridges, major bridges, RUBs/LHS, building works, supply of ballast, P. Way linking and other allied works, including utility shifting of S&T and electrification works such as general service works, including power supply arrangements, shifting and modification of HT and LT lines between Khurda Road - Gangadharpur.

This is in connection with the execution of work on the third line between Nergundi-Barang (22 Km) and Khurda Road-Vizianagaram (363km) on Bhadrak-Vizianagaram Section (385km).

In August, the company received a Letter of Award for the provision of MSDAC to increase reliability in the ABS section of KUR division of East Coast Railway, with alteration in Els of M/s HITACHI Rail STS India make at BBS, MEDHA Servo Drives make at HND, BBSN, MCS & TLHD, M/s Siemens Rail Automation (P) WESTRACE Mk-II make at RJGR, SSPR, DNKL, MZY, GJTA, CBT, SQQ, NRG & CTC, WESTRACE MK-I make at BRAG & RTN, KYOSAN make at JRZ station.

This project was worth Rs 161 crore and is to be completed in nearly 18 months from the date of order received.

RVNL share price

In the current calendar year, the RVNL share price was down 40.86% and down nearly 35% in the last one year. The stock went up 38.91% in the last three years and 578% in the last five years.

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