Stock in Focus: Government railway company Rail Vikas Nigam Limited (RVNL) has got a big project worth ₹145.35 crore from Southern Railway. The company told the stock exchange that it has been issued a Letter of Acceptance (LOA). This project is related to strengthening the railway traction power system.
What work will RVNL do?
RVNL will install many important systems in the Jolarpettai–Salem section under this project. The company will install Scott-connected traction substations, install power quality equipment and prepare switching posts. Along with this, 2×25 kV feeding system will be set up on the entire route.
The project also includes installation of SCADA system and installation and commissioning of automatic fault locator. This work is considered important for the Mission 3000 MT freight-loading target of Indian Railways.
Work will be completed in 540 days
RVNL said that this project will be completed in a time frame of 540 days. RVNL clarified that this is an order from a domestic unit. Further, no promoter group of the company has any interest in Southern Railway, hence it is not a related-party transaction.
Status of RVNL shares
RVNL stock closed at Rs 311.90 on Wednesday, down 1.89%. The stock has fallen 22.75% in the last 6 months. At the same time, it has fallen by 28.75% in 1 year. However, in the last 5 years it has given a return of 1,196%. The market cap of the company is Rs 65.02 thousand crore.
What is the business of RVNL?
RVNL (Rail Vikas Nigam Ltd) is a government company under the Ministry of Railways. Its main work is to create and upgrade the railway infrastructure in the country. The company handles major engineering works like laying new railway lines, converting old routes into double or triple line, preparing power supply systems for trains, station modernization, signaling systems and metro projects.
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