Explained: 2 key developments driving RVNL, Ircon and other railway stocks higher

Shares of railway stocks, including IRCTC, Ircon, Titagarh Rail Systems, RVNL, IRFC, among others rallied up to 4% on Thursday after the Cabinet Committee on Economic Affairs approved five railway multitracking projects worth around Rs 10,021 crore across Tamil Nadu, Andhra Pradesh, Karnataka and Telangana.

In today's session, Titagarh gained 2% to Rs 894, while Ircon International gained over 3.6% to trade at Rs 119 per share. IRCTC was up over a percent, while RVNL gained 2% to Rs 211 per share. IRFC shares also traded over a percent higher on Thursday.

The projects will add about 540 km to the existing Indian Railways network and are planned for completion by 2029-30. The approved works include the 77-km Arakkonam-Renigunta third and fourth lines, the 47-km Whitefield-Bangarapet third and fourth lines, the 147-km Hosur-Omalur doubling project, the 159-km Salem-Karur-Dindigul doubling project and 110 km of multitracking between Secunderabad (Ghatkesar) and Kazipet.


The projects cover 17 districts across the four states and are expected to increase rail capacity, improve operational efficiency and service reliability, while easing congestion. They have been planned under the PM Gati Shakti National Master Plan, with a focus on additional rail networks that will improve connectivity to around 2,121 villages with a combined population of about 52 lakh.

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The routes are also important for transporting commodities such as coal, cement, iron and steel, containers, automobiles, food grains, petroleum products and fertilisers. The capacity expansion is expected to support additional freight traffic of 47 MTPA (million tonnes per annum), the government press release stated.

3 more projects cleared

The Cabinet Committee on Economic Affairs (CCEA) also approved three railway multitracking projects worth Rs 10,783 crore, covering 14 districts across West Bengal, Jharkhand, Odisha, Madhya Pradesh and Chhattisgarh.

The projects, planned for completion by 2029-30, will add around 656 km to the Indian Railways network and are expected to enhance line capacity, ease congestion and improve operational efficiency and service reliability.

The projects are key freight corridors for commodities such as coal, cement, iron and steel. The additional capacity is expected to enable incremental freight movement of around 27 million tonnes per annum.

Read more: PM Modi hails Rs 20,000 crore railway projects, says they will boost connectivity, cut logistics costs

Prime Minister Narendra Modi said the five major railway projects worth over Rs 10,000 crore will ensure better rail connectivity in South India.

"Lakhs of people to benefit. Today's Cabinet decision ensures faster passenger movement, stronger connectivity and additional freight capacity," he said in a post on 'X'.

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