Patna: Rail Vikas Nigam Limited (RVNL) has secured a contract worth ₹903 crore from SJVN Thermal Limited for the construction of a permanent siding and associated rail connectivity for the 1,320 MW Buxar Thermal Power Project in Bihar. The order was awarded through a Letter of Award (LoA) and includes GST.
The project has an execution period of 36 months, according to the company’s exchange filing. RVNL said the order falls within the normal course of its business and does not qualify as a related party transaction.
RVNL Wins ₹903 Crore Railway Infrastructure Order
The contract represents Phase III of the planned rail connectivity works for the Buxar Thermal Power Project.
Key details of the order include:
- Order value: ₹903 crore, including GST
- Client: SJVN Thermal Limited
- Project: 1,320 MW Buxar Thermal Power Project
- Location: Buxar, Bihar
- Execution period: 36 months
- Award mechanism: Letter of Award
- Project phase: Phase III of planned rail connectivity
- Related party transaction: No
- International component: None
Scope Includes Permanent Siding and Rail Link
Under the contract, RVNL will undertake the construction of a permanent siding and associated rail connectivity for the thermal power project.
The scope includes an aerial connection by track running from the plant boundary towards Chausa and Pawani Kamarpur in Buxar.
The rail infrastructure is expected to support the movement of materials and other logistics associated with the power plant, strengthening its connectivity with the wider railway network.
Project to Be Completed Within 36 Months
RVNL will now proceed with detailed planning and coordination with SJVN Thermal before commencing the construction activities.
The company said it will mobilise the required resources to meet the stipulated execution timeline and align the work with the project’s milestones.
The order was awarded by a domestic entity, and RVNL confirmed that there is no international component involved in the contract.
RVNL Shares Remain Under Pressure
RVNL’s shares were relatively flat in intraday trading on the day of the disclosure.
The stock has declined by around 7.5% over the previous month and has fallen 35.44% over the past year, based on the information disclosed.The new order adds another railway infrastructure project to RVNL’s order portfolio as the company continues to execute projects across rail connectivity and transportation infrastructure.
About Rail Vikas Nigam Limited
Rail Vikas Nigam Limited (RVNL) is a Navratna Central Public Sector Enterprise under the Ministry of Railways. Incorporated on January 24, 2003, the company was established to implement the National Rail Vikas Yojana. RVNL undertakes projects including new railway lines, gauge conversion, electrification, major bridges and metro corridors, besides mobilising extra-budgetary resources through project-specific special purpose vehicles. The Government of India remains the majority shareholder, and RVNL was listed on the stock exchanges in 2019.
About SJVN Limited
SJVN Limited is a state-owned power generation company under the Ministry of Power, Government of India. The company is engaged in developing and operating hydropower, renewable energy and other power projects across India and has been expanding its presence in the renewable energy sector.
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