RVNL bags multiple orders from Central Railway, Bangalore Metro Rail, stock up 3%

Rail Vikas Nigam (RVNL) on Monday announced it has emerged as the lowest bidder for Central Railway’s OHE modification work for the upgradation of an existing 25 kilovolt (kV) electric traction system in the Amla-Nagpur section to meet the loading target of 3000 MT. Shares of the company were trading nearly 3% higher on Tuesday morning.

The order value is worth over ₹138 crore and is expected to be executed within 24 months. Additionally, the RVNL-Siemens consortium has received a letter of acceptance (LoA) from the Bangalore Metro Rail Corporation for the engineering, supply, erection, testing, and commissioning of 33 kv distribution and 750 V DC third rail traction electrification. The order also includes traction substations, auxiliary substations, and SCADA systems for phases 2A and 2B.

The order value stands at over ₹394 crore plus Є41.1 million in a 70:30 ratio between Siemens and RVNL, respectively. The project is expected to be executed within 130 weeks. Last week, RVNL announced that KRDCL-RVNL JV, its joint venture with the Karnataka Road Development Corporation (KRDCL), emerged as the lowest bidder for a Southern Railways project worth ₹156 crore. As per the terms of the order, the company will provide automatic signalling on the Ernakulam Junction (ERS) - Vallattol Nagar (VTK) section on the B-route of Thiruvananthapuram division in Southern Railway. The order is expected to be completed within 750 days.

The company also received a letter of agreement (LoA) from NTPC for an order worth ₹495 crore and an order from Eastern Railways for an order worth ₹391 crore.

RVNL is an Indian central public sector enterprise that works as the construction arm of the Ministry of Railways and looks into project implementation and transportation infrastructure development.

Shares of the company have risen by nearly 106% since the beginning of the year. The stock has gained over 202% in the last one year.