Railway sector-linked stocks gained on Thursday after the Cabinet Committee on Economic Affairs approved construction of six railway lines and a railway bridge.
Shares of Kalindee Rail Nirman (Engineers) were trading 3.18 per cent up at Rs 139.40 (at 12.12 pm). Other rail-related stocks such as Titagarh Wagons, Texmaco Rail & Engineering, Sanghvi Movers and Siemens were trading up by 2.71 per cent, 0.90 per cent, 1.30 per cent and 0.12 per cent, respectively.
BEML which supplies equipment to Indian Railways was also trading 0.76 per cent higher in the noon trade.
The Cabinet Committee on Economic Affairs on Wednesday approved the construction of six rail lines and a railway bridge at an estimated cost of Rs 10,700 crore to cater to increased passenger and freight needs.
Chaired by Prime Minister Narendra Modi, the CCEA gave its nod for the construction in a 908 km stretch, which will cost over Rs 10,700 crore. Most part of the expenditure will be met through extra budgetary resources (Institutional Financing), according to a release.
The expansion includes doubling of Hubli-Chickajur line, Wardha (Sewagram)- Ballarshah third line, doubling of Ramna-Singrauli line, third line between Anuppur-Katni, doubling of Katni-Singrauli line and an additional bridge, and doubling of Rampur Dumra-Tal-Rajendrapul line.
(With agency inputs)