Rail Vikas Nigam (RVNL) has received a Letter of Award from SJVN Thermal for construction work linked to the 1320 MW Buxar Thermal Power Project in Bihar. The state-run railway infrastructure company disclosed the development to stock exchanges. SJVN Thermal is a wholly owned subsidiary of SJVN.
RVNL to build permanent siding for Buxar Thermal Power Project
The contract covers construction of a permanent siding along with an aerial connection via track. The route runs from the plant boundary to Chausa and Pawani Kamarpur at Buxar. This is Phase III of the work planned for the Buxar Thermal Power Project, referred to as BTPP in the filing.
RVNL said the order falls within the normal course of its business.
RVNL Buxar project order worth Rs 903 crore, execution period 36 months
The order is valued at Rs 903 crore, inclusive of GST. The company has 36 months to execute the work, according to details submitted in an annexure to the exchange filing.
RVNL also confirmed that the contract was awarded by a domestic entity and does not involve any international component. It also clarifies that the order does not qualify as a related party transaction.
About RVNL
RVNL is a Navratna central public sector enterprise under the Ministry of Railways. It was incorporated on 24 January 2003 to implement the National Rail Vikas Yojana, a scheme to develop railway infrastructure across India.
The company undertakes rail projects ranging from new lines and gauge conversion to railway electrification, major bridges and metro corridors, and also works on mobilising extra-budgetary resources through project-specific special purpose vehicles. RVNL is majority-owned by the Government of India and is listed on both the NSE and BSE, having completed its public listing in 2019.
RVNL share price: Stock down 35% in one year
RVNL’s share price was rather flat as of intraday on September 7. The company’s share price was down 7.5% in the last month. Over the past year, RVNL’s share price has been down 35.44%.