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Hot Pursuit News

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(16 Jan 2025, 12:55)

RVNL sizzles after receiving LoA for Rs 9,613-crore project from BSNL

Rail Vikas Nigam (RVNL) soared 8.59% to Rs 403.85 after the company announced the receipt of letter of acceptance (LoA) from Bharat Sanchar Nigam (BSNL) for a project worth Rs 9,613.42 crore.


The project involves the development (creation, upgradation, and operation & maintenance) of the middle mile network of Bharat Net on the design, build, operate, and maintain (DBOM) model.

This design, build, operate, and maintain (DBOM) project has a 3-year construction period, followed by a 10-year maintenance contract.

The maintenance fee will be 5.5% of the capital expenditure (capex) annually for the first 5 years and 6.5% annually for the subsequent 5 years.

Rail Vikas Nigam is in the business of executing all types of railway projects, including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges, institution buildings, etc.

The company had reported a 27.26% decline in consolidated net profit to Rs 286.89 crore on a 1.20% slide in revenue from operations to Rs 4,854.95 crore in Q2 FY25 over Q2 FY24.

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