Rail Vikas Nigam Limited (RVNL), a government-owned company under the Ministry of Railways, has received a Letter of Acceptance (LoA) from East Coast Railway for a project worth Rs 201.23 crore. The order involves setting up a Wagon Periodic Overhauling (POH) workshop at Kantabanji in Odisha.
The workshop will have the capacity to repair and overhaul 200 freight wagons. Wagon POH facilities are important for Indian Railways as they help maintain freight wagons, improve safety, and ensure smoother movement of goods across the rail network. Once completed, the new workshop is expected to strengthen freight operations in the eastern region.
According to RVNL’s regulatory filing, the total contract value is Rs 201.23 crore, excluding GST. The company has been declared the sole bidder for the project, meaning no other company qualified or matched its bid. The project is expected to be completed within 18 months from the date work begins.
RVNL stated that the order has been awarded in the normal course of business. It also clarified that the project does not involve any related-party transactions. The promoters and promoter group of RVNL have no financial or other interest in East Coast Railway.
This new order adds to RVNL’s existing order book and supports its role as a key company involved in railway infrastructure development in India. RVNL is known for executing projects such as new railway lines, track doubling, electrification, station redevelopment, major bridges, and railway workshops.
Despite the positive news, RVNL shares came under pressure in the stock market following the announcement. Market participants appeared cautious, even though the project improves the company’s long-term revenue visibility.
The Kantabanji wagon workshop is expected to help Indian Railways reduce delays in wagon maintenance and improve efficiency in freight movement. Freight traffic plays a crucial role in India’s logistics and supply chain, and such infrastructure projects are seen as important for supporting economic growth.
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