Rail Vikas Nigam Ltd (RVNL) stock surged nearly 4% after it received a Letter of Acceptance (LoA) from the Central Railway for a project worth Rs 311.2 crore. The project involves building tunnels and bridges spanning 1.6 km in the Dharakoh Maramjhiri section of Madhya Pradesh.

Shares of RVNL jumped to an intraday high of Rs 162.9, up 3.8% from the previous closing price on the National Stock Exchange (NSE). At 12:05 pm, the scrip was trading at 2.23% higher at Rs 160.40. 

According to the exchange filing, the scope of work includes the construction of four tunnels with ballastless tracks, earthwork in formation, two important bridges, one major bridge, and 25 minor bridges. Additionally, RVNL will supply stone ballast, handle track linking, construct side drain retaining walls and perform other associated tasks.

The contract, awarded by the Central Railway, is focused on enhancing rail infrastructure with a third line in the specified section. RVNL, functioning as the executing arm of Indian Railways, operates on a turnkey basis, overseeing project development from conception to commissioning.

This latest order follows a series of successful bids and project awards for RVNL, showcasing its continued involvement in crucial rail development initiatives. The company’s ability to secure and execute projects contributes to the overall expansion and enhancement of India’s railway infrastructure.