The order is valued at ₹903 crore, including Goods and Services Tax (GST). Under the contract, RVNL will construct a permanent siding along with an aerial connection via track from the plant boundary to Chausa and Pawani Kamarpur at Buxar, as part of Phase III of the project.
The order has been awarded by a domestic entity and is in the normal course of RVNL’s business. The execution period is 36 months. RVNL said the promoter, promoter group and group companies have no interest in SJVN Thermal Private Limited. The order also does not fall under related-party transactions.
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Yesterday, Rail Vikas Nigam Ltd has emerged as the lowest bidder for a ₹404.88-crore project from East Coast Railway, the state-owned company said in an exchange filing.
The project involves a range of civil and railway infrastructure works, including construction of the roadbed and bridges, track laying, supply of ballast, buildings and road underbridges.
RVNL will also undertake utility shifting, signalling and telecommunications work, electrification, power-supply arrangements and the shifting or modification of high- and low-tension electricity lines. The ₹404.88-crore contract value includes GST.
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The work is connected to the construction of a third railway line on the Nergundi-Barang and Khurda Road-Vizianagaram stretches. Together, the two stretches cover 385 km — 22 km between Nergundi and Barang and 363 km between Khurda Road and Vizianagaram.
Adding a third line can increase a railway corridor’s capacity by allowing it to handle more passenger and freight trains and reducing congestion on existing tracks.
RVNL has emerged as the L1, or lowest, bidder for the project. Being L1 typically puts the company in pole position for the contract, but it isn’t the same as receiving the final Letter of Acceptance.
Shares of Rail Vikas Nigam Ltd ended at ₹212.00, up by ₹2.50, or 1.19%, on the BSE.
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