Shares of Rail Vikas Nigam Ltd were trading in the red and 1% lower on 7 November despite the company announcing that it has emerged as the lowest bidder (L1) for an order from the Central Railway worth over Rs 272 crore.

The project requires the company to design, supply, erect, test, and commission a 220/132/55 KV traction substation, along with sectioning posts (SPs) and sub-sectioning posts (SSPs) for the 2 × 25 KV Scott-connected traction system in the Daund–Solapur section of Central Railway.

The project, which aims to fulfil a 3,000-MT loading target, will be completed in 24 months through engineering, procurement, and construction (EPC).

The company also told the markets that its promoters had no stake in Central Railway, and the order does not fall within related party transactions.

Earlier, in October, Rail Vikas received three orders. The North Eastern Railway granted a major infrastructure project for Rs 165.5 crore as part of its usual operations.

The company stated in its release that the contract involves constructing the substructure of a bridge using a Double-D type well foundation for double-line operations with RDSO 25-ton axle-load standards. The bridge will be built over the river Gandak, between Paniyahwa and Valmikinagar stations, as part of the doubling project between Gorakhpur Cantt and Valmikinagar under the North Eastern Railway.

The company emerged as the lowest bidder in October for a reverse auction conducted by South Central Railway for the design, supply, erection, testing, and commissioning of OHE upgradation from the existing 1×25 kV system to a 2×25 kV AT feeding system, including feeder and earthing works, in the Ramgundam (RDM) – Kazipet (KZJ) section of the Secunderabad Division, spanning 92 RKM / 276 TKM. The project value stood at Rs 144,44,51,878.04.

Earlier, in October, Western Railway awarded the company a Rs 40,41,60,533.80 contract to strengthen S&T maintenance activities, including round-the-clock manpower deployment for the maintenance, repair, and upkeep of signalling and telecom equipment installed across various locations in the Ahmedabad Division for two years.

At 12:28 pm, the shares of Rail Vikas Nigam were trading 0.36% lower at Rs 316.65 on NSE.

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