2 hrs ago
RVNL Emerges Lowest Bidder for Rs 405 Crore Railway Project
Rail Vikas Nigam Limited, or RVNL, has been selected to build parts of a new third railway line.
The East Coast Railway project is worth about Rs 405 crore, including taxes.
The work is connected to railway routes between Nergundi-Barang and Khurda Road-Vizianagaram.
It includes building the ground under the tracks, bridges, underpasses, and railway buildings.
RVNL will also provide ballast, which is the material placed under railway tracks.
The company will connect the railway tracks and move or change some signaling, communication, and electrical systems.
The project is expected to take 30 months.
RVNL said the contract is a normal domestic business project and is not a related-party transaction.
The company reported higher yearly profit in the June 2026 quarter, although its profit fell compared with the previous quarter.
Rail Vikas Nigam Limited emerged as the lowest bidder for a Rs 404.88 crore East Coast Railway contract, including GST.
The project covers a third railway line linked to the Nergundi-Barang and Khurda Road-Vizianagaram works on the Bhadrak-Vizianagaram section.
Planned work includes roadbeds, railway underpasses, major and minor bridges, buildings, ballast supply, and permanent-way linking.
The scope also includes utility shifting, signaling, telecommunications, electrification, power supply, and modification of high- and low-tension lines.
The domestic project is scheduled for completion in 30 months; reports differed on whether RVNL shares rose 2% or ended flat.
- Who
- Rail Vikas Nigam Limited and East Coast Railway.
- What
- RVNL emerged as the lowest bidder for a Rs 404.88 crore contract to execute infrastructure and allied works for a third railway line.
- Where
- The work is associated with the Nergundi-Barang and Khurda Road-Vizianagaram routes on the Bhadrak-Vizianagaram section, including the Khurda Road-Gangadharpur area.
- When
- The contract was announced on Thursday after market hours and is scheduled for completion within 30 months; the financial results cited are for the June 2026 quarter.
- Why
- To develop infrastructure for a third railway line on the Bhadrak-Vizianagaram section.
Reported 2% Rise
Reported Flat Close
RVNL’s immediate market reaction
Reported 2% Rise
One report described RVNL shares as rising 2% after the company emerged as the lowest bidder for the project.
Reported Flat Close
Another report said RVNL shares ended Thursday’s trading flat after the contract announcement.
Key facts
- Contract value
- Rs 404.88 crore, inclusive of GST
- Client
- East Coast Railway
- Project duration
- 30 months
- Project scope
- Roadbeds, underpasses, major and minor bridges, buildings, ballast supply, and permanent-way linking
- Systems work
- Utility shifting, signaling, telecommunications, electrification, power supply, and high- and low-tension line modifications
- Railway section
- 385 km overall: 22 km between Nergundi-Barang and 363 km between Khurda Road and Vizianagaram
- June 2026 quarter
- Consolidated net profit rose 18.5% year over year to Rs 159.36 crore, while revenue rose 10.6% year over year to Rs 4,321.23 crore
- Share performance
- One report said shares rose 2%, while another said they ended Thursday flat; the latter also reported declines of about 10% in one month, 28% in six months, and 37% in one year
Sources
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