Shares of Rail Vikas Nigam Limited (RVNL) slumped 3% on Monday, 24 February, despite the company announcing emerging as the Lowest Bidder (L1). 

In its regulatory filing, the company said that they have been chosen by South Western Railway as the Lowest Bidder (L1) for a significant project, the company announced on Friday. 

The filing added that the scope of the order is Engineering, Procurement, and Construction (EPC) for the design, supply, erection, testing, and commissioning of the 2×25 KV Overhead Electrification (OHE) and Power Supply (PSI) System” between Rayadurga and Topavagada in the TK-RDG section.

The scope of the contract comprises the installation of Transmission Substations (TSS), Switching Posts (SPs), and Sectioning and Paralleling Posts (SSPs) in addition to general electrical services, engineering, and telecommunications work. In total, the project will require approximately 99.463 RKM/114.145 TKM.

According to a SEBI circular, the project is domestic in scope and is expected to be completed in 18 months. The estimated total cost of the project is Rs 156.36 crores.

RVNL’s successful proposal was submitted in line with standard business practices; the promoter group firms did not take part in the contract awarding process. The company has confirmed that this transaction does not include related party transactions.

RVNL is a public sector business (PSU) under the Ministry of Railways. The company plans and constructs rail infrastructure projects in India.

At 1:15 pm, the shares of RVNL were trading 2.04% lower at Rs 364.10 on NSE.

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