Shares of Rail Vikas Nigam Ltd. (RVNL) were up 10% on Monday, November 25, reaching an intraday high of Rs 462.90 on the NSE after the company was awarded a project for Rs 837 crore by Eastern Railway.

In its regulatory filing, the company said, “It is hereby informed that M/s RVNL- SCPL (JV) has received a letter of acceptance from Eastern Railway.”

Under the agreement, RVNL will construct a multi-tracking Railway BG line between Kalipahari and Pradhankhuta, including earthwork for cutting and filling, blanketing, building minor and major bridges, RUB, ROB, retaining walls, level crossings, side drains, and catch water drains.

The term “BG line” describes a broad-gauge railway line, which is a track with a wider spacing between tracks than the regular gauge. 

In the meantime, RVNL has been fined Rs 5,42,800 by the BSE and the National Stock Exchange (NSE) for breaking the rules.

According to the disclosure, for the quarter ending September 30, 2024, half of the company’s board, including its female independent director, was not independent.

In a clarification note, RVNL has cited that the company is a government entity as per provisions of section 2(45) of the Companies Act, 2013.  

“All directors in RVNL are appointed by the government of India through its Administrative Ministry, Ministry of Railways (MoR) and RVNL has no role to play in the appointment of any Director,” the filing read.

In order to lead the development of railway infrastructure in India, the Ministry of Railways formed Rail Vikas Nigam Limited (RVNL) in 2003. Its main objective is to plan, build, and modernise railway lines, stations, signalling, electrification, and other associated infrastructure projects. In addition to improving connectivity and operational efficiency, RVNL is essential to the modernisation and growth of India’s railway network.

The organisation works on a variety of projects, including building new tracks, doubling lines, converting gauges, and creating passenger facilities. Being a government-owned company, RVNL makes a substantial contribution to the expansion of Indian Railways and guarantees the execution of major infrastructure projects throughout the nation.

At 2:12 pm, the shares of RVNL were trading 4.04% higher at Rs 437.20 on NSE. 

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