President Of India-Backed Railway PSU Secures Rs 758 Crore NMDC Contract
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RVNL received a Letter of Acceptance from NMDC Limited for railway siding and civil infrastructure development work at Bacheli, with execution scheduled over 36 months.
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On Friday, the Indian equity benchmarks ended higher, with the benchmark Nifty 50 index closing up 0.27 per cent at 23,719.30. Railway and infrastructure stocks remained in focus amid fresh project wins from government entities. In this segment, Rail Vikas Nigam (RVNL) share price ended marginally higher by 0.13 per cent at Rs 271.10 after the company announced receipt of a major contract from NMDC Ltd.
RVNL Secures Rs 758 Crore NMDC Contract
Rail Vikas Nigam Limited informed exchanges that it has received a Letter of Acceptance (LOA) from NMDC Limited for development of railway infrastructure near Padapur Village for capacity expansion at Bacheli. The total contract value stands at Rs 758.07 crore, including GST at 18 per cent.
Project Scope And Execution Timeline
The scope of work includes development of a railway siding near Padapur Village along with bridges, PWD road diversion and associated civil works. The contract also covers preparation of Feasibility Study Report (FSR), Detailed Project Report (DPR), detailed engineering, execution and Project Management Consultancy (PMC) services for the capacity expansion project at Bacheli.
RVNL stated that the project is scheduled to be executed over a period of 36 months.
Regulatory Disclosure
The company clarified that the contract has been awarded by a domestic entity and falls within the normal course of business of the company. RVNL further stated that neither the promoter nor promoter group companies have any interest in the awarding entity and the contract does not qualify as a related party transaction.
The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
About RVNL
Rail Vikas Nigam Limited is a Government of India enterprise under the Ministry of Railways engaged in implementation of railway infrastructure projects across India. The company undertakes rail connectivity, electrification, metro, bridges and other transportation infrastructure development projects.
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Disclaimer: This article is for informational purposes only and not investment advice.