RVNL Emerges as L1 Bidder for Railway Projects Worth Over Rs. 2,000 Crore
Rail Vikas Nigam Limited (RVNL) has emerged as the Lowest (L1) bidder for a series of railway projects collectively valued at approximately Rs. 2,075 crore. These projects will be executed in Maharashtra, West Bengal, and Karnataka.
RVNL to Execute Key Railway Projects in Maharashtra, West Bengal, and Karnataka
Maharashtra: Track Doubling Between Parbhani and Parli
In a stock filing dated 4th November 2024, RVNL confirmed its status as the L1 bidder for the project involving the doubling of railway tracks between Parbhani and Parli stations (excluding Gangakhed section) in Maharashtra. This project covers a 58.06 km section.
These works are estimated cost about Rs. 625.08 crore and are expected to be completed in a period of 30 months.
Doubling the tracks will alleviate congestion on the route, which is used by express, passenger, and freight trains. The Parli-Parbhani line currently handles more than 16 express and passenger trains, along with freight traffic. As reported by the local media, currently, the trains coming from Parbhani are often held up for 60 to 90 minutes at Vadgaon Nila station. Doubling of Parbhani-Parli line is expected to reduce such delays.
RVNL in JV to Execute Railway Works in West Bengal
In a filing dated 5th November 2024, RVNL mentioned that as a part of a Joint Venture, the company has emerged L1 bidder for a series of railway-related construction works in West Bengal.
Scope of work in this project includes construction of minor and major bridges, as well as road under bridges (RUBs) and road over bridges (ROBs). Additionally, the scope also covers the construction of retaining walls, level crossings, side drains, and catchwater drains. This successfull bidder will also be responsible for executing earthworks such as cutting, filling and blanketing.
This work is planned between IR Chainage 205.000 Km and 260.200 Km, from Kalipahari (inclusive) to Pradhankhuta (exclusive).
RVNL’s stock filing specified a execution cost of Rs. 837.67 crore and a time period of 36 months for this order.
RVNL – Rithwik Projects JV L1 Bidder for Bengaluru Suburban Rail Project
In a separate stock filing dated 5th November 2024, Rail Vikas Nigam Limited (RVNL) announced that it has emerged as the L1 bidder in a joint venture with Rithwik Projects Pvt. Ltd. (RPPL) for the construction works under Package C4A of the Bengaluru Suburban Rail Project (BSRP). The development cost for this project is estimated at Rs. 613 crore, with a completion timeline of 24 months.
Scope of work under Package C4A involves the construction of 8 at-grade stations and 1 elevated station on Corridor-4A of the Bengaluru Suburban Rail Project. The nine stations will be developed at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, and Kaggadasapura. The scope of work includes the development of entry/exit structures and roof structures, along with the execution of civil, structural, and Electrical & Mechanical (E&M) works.
RVNL holds a stake of 51% in the JV while Rithwik Projects Pvt. Ltd. owns the remaining 49% stake in the JV.
Bengaluru Suburban Rail Project is designed to improve public transportation in Bengaluru and shorten travel times. It is being carried out by the Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE) and is scheduled for completion by 2026.
Brief Background of RVNL’s Railway Projects During FY-25
During FY-25, RVNL continued its focus on expanding and modernizing India’s railway infrastructure with several projects. These projects included construction of new railway lines, electrification of existing tracks, gauge conversion, and the development of high-speed rail corridors.
In May 2024, RVNL had received a Letter of Acceptance (LoA) for railway electrification works from South Eastern Railway. The company also received LoA from South Eastern Railway in July 2024.
RVNL’s Stock Gains 5% Backed by Order Announcements
It is interesting to note that RVNL’s share price was significantly influenced by its emergence as L1 bidder in all of the aforementioned projects. On 4th November 2024, RVNL’s share price stood at Rs. 446.20 per share, which rose to Rs. 469.65 per share on 6th November 2024. This shows an overall increase of 5.26% in the company’s share price over a period of three trading days.
About RVNL: Rail Vikas Nigam Limited, established in 2003 under Ministry of Railways, is focused on the modernization and expansion of India’s railway infrastructure. It undertakes projects such as new line construction, electrification, and station redevelopment, aiming to improve efficiency, capacity, and safety across the railway network.
