Rail Vikas Nigam Becomes Lowest Bidder for ₹1.16 Billion Order, Augments Infra Pipeline with Bengaluru Suburban Rail Project

Rail Vikas Nigam Limited (RVNL), the top public sector infrastructure developer, has been emerged as the lowest bidder for the major order of ₹1.16 billion. The win over the order also adds strength to RVNL's strong project pipeline and reflects the company's enhanced role in India's widening rail infrastructure business.

 

Order Value and Scope

RVNL won the lowest quoted order for a value of ₹1.16 billion (about $13.5 million). The order is one of a series of larger infrastructure development efforts and will add to the revenue visibility of the company in terms of revenue over the next two years.

 

Project Details:

The order refers to construction of nine stations-one elevated and eight at-grade-on Corridor-4A of Bengaluru Suburban Rail Project (BSRP). Scope includes civil, structural, entry/exit structures, steel foot-over-bridges, roof structures, pre-engineered building (PEB) works, architectural finishes, and E&M works, in addition to detailed design and engineering for the stations.

 

JV and Execution:

The work will be carried out by a joint venture between Rithwik Projects Pvt. Ltd. (49%) and RVNL (51%). The work order was given by Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE), and the time of execution is 24 months.

 

Strategic Significance:

This victory solidifies RVNL's reputation as a go-to partner for India's most complex and high-scale rail infrastructure projects. The Bengaluru Suburban Rail Project is one of the flagship projects to decongest the city and enhance urban mobility, thus this order is a high-profile addition to RVNL's portfolio.

 

Insight

The ₹1.16 billion order victory reflects RVNL's competitive advantage in the infrastructure space and its capability to win and execute large government-sponsored projects. With a robust order book and steady project execution, RVNL is well-placed to gain from India's continued investment in rail and urban transport infrastructure.

 

Source: MarketScreener, Reuters, Zerodha