Rail Vikas Ltd. Secures ₹311.17 Crore LOA, Shares Surge

Rail Vikas Nigam Limited (RVNL) witnessed a 2.26% surge in its shares following the announcement of securing a Letter of Acceptance (LOA) from the Central Railway. The LOA entails the construction of four tunnels, totaling 1.6km with a ballastless track, along with the construction of bridges, supply of stone ballast, track linking, and a side drain retaining wall in the Dharakoh-Maramjhiri section in connection with the third line. The execution timeline for the project is set at 18 months, and the order is valued at ₹311.17 crore.

In a related development, RVNL revealed that the Ministry of Railways has taken actions against one of its Special Purpose Vehicles (SPVs), Kinet Railway Solutions Limited. The Ministry imposed a penalty of ₹7.5 crore for violating the clause of the Manufacturing cum Maintenance Agreement (MCMA). As one of the promoters of M/s. Kinet Railway Solutions Limited, Rail Vikas Nigam Limited has covered the penalty amount on behalf of the SPV.

HBL