Rail Vikas Nigam Ltd (RVNL), a government-owned entity, has announced receiving a Letter of Acceptance (LoA) from Eastern Railway for a significant infrastructure project. Valued at ₹837.67 crore, the project involves earthwork, bridge construction, and railway track laying between Kalipahari (inclusive) and Pradhankhuta (exclusive), covering a stretch from IR Ch. 205.000 km to 260.2 km. The initiative is part of a multi-tracking broad-gauge (BG) railway line construction, as stated in RVNL’s update to the Bombay Stock Exchange.
The scope of work includes earthwork, blanketing, construction of major and minor bridges, retaining walls, level crossings, and drainage systems. RVNL, as the lead partner in a joint venture with SCPL, holds a 74% stake, while SCPL holds the remaining 26%. The project is expected to be completed within 36 months. RVNL also clarified that this domestic contract does not involve any related-party transactions.
Despite securing this project, RVNL has reported a 27% decline in net profit year-on-year, which fell to ₹286.9 crore from ₹394.3 crore due to lower operating margins and reduced earnings. Revenue from operations saw a slight drop of 1.2% year-on-year to ₹4,855 crore in Q2 FY24, down from ₹4,914.3 crore. EBITDA also decreased by 9% to ₹271.5 crore, with operating margins narrowing to 5.6% from 6% in the corresponding period last year, reflecting increased operational pressures.
Rail Vikas Nigam Ltd (RVNL) is a public sector enterprise under the Ministry of Railways, India, established to undertake infrastructure development projects to enhance the country’s railway network. Specializing in the planning, execution, and management of rail-related projects, RVNL handles tasks such as track doubling, gauge conversion, electrification, and construction of new railway lines, bridges, and other critical infrastructure.
The company often collaborates with joint ventures and private partners to deliver large-scale projects efficiently. With a focus on modernizing India’s railway infrastructure, RVNL plays a vital role in supporting the government’s vision of expanding and upgrading rail connectivity to meet the growing demands of passengers and freight transport.
