Shares of Rail Vikas Nigam (RVNL) surged 10% to Rs 64.30 on the BSE in intraday trade on Thursday after the company’s joint venture (JV) with Russian firm Transmashholding (TMH) emerged as the lowest bidder. Maintenance of 200 light Vande Bharat trains.

The company was the lowest bidder (L1) for “Vande Bharat train manufacturing and maintenance including the upgrade of government manufacturing unit and train depot” in a joint venture with JSC Metrowagonmash (70%), JSC Locomotive Electronic RVNL in a deal Indicated in the document, the system (5%) and the RVNL (25%). Metrowagonmash is part of Transmashholding.

Based on the financial disclosure date of March 1, 2023, M/s. JSC Metrowagonmash-Mytischi-RVNL (JV) has been declared L-1. The company said the total number of trains is 200 at Rs 120 crore each. Notifications regarding the Letter of Award (LOA) and statement will be submitted as is and will be added upon receipt of the LOA.

According to media reports, the consortium bid around Rs 58,000 crore and the cost of manufacturing a set of trains is Rs 120 crore.

RVNL, its subsidiaries and joint ventures are engaged in the business of implementing various railway infrastructure projects designated by the Ministry of Railways (MoR), including double tracks (including third and fourth tracks), gauge conversion, new lines, railway electrification, major bridges, The concession agreement signed by the Ministry of Railways, workshops, production units and share freight revenue with the railway.

RVNL’s main client is Indian Railways, and other clients include central and state government ministries, departments and public sector enterprises. RVNL has also begun to participate in the subway, road and other infrastructure areas through bidding.

RVNL was up 7% at Rs 62.70 at 9:34 am, while the S&P BSE Sensex was down 0.43%. The counter was heavily traded, with 18 million equity shares changing hands on the NSE and BSE.