RVNL shares hit a day’s high of Rs 227.50 on the NSE after the state-run firm emerged as lowest bidder for a Rs 359 crore rail project.

RVNL informed the exchanges that it has been named L1, or the lowest bidder, for an engineering, procurement and construction contract from East Central Railway. The precise value of the deal comes to Rs 358.97 crore, which includes 18% GST.

The work involves doubling an existing single railway line between Kundawa Chainpur and Raxaul in Bihar, a stretch of just over 41 kilometres. This forms part of a larger project to double the Sitamarhi-Raxaul line.

The scope covers everything from basic earthwork to building bridges, stations, platforms and level crossings, all designed for heavier 25-tonne freight loads. RVNL has three years, or 1,095 days, to finish the job.

The company clarified that this is not a related-party transaction. Neither RVNL’s promoters nor group entities have any stake in the East Central Railway, which awarded the contract. This isn’t the only development for RVNL this week.

Just three days earlier, on 17 July, the company had signed an agreement with a state government to jointly identify and execute infrastructure projects going forward, with RVNL acting as the executing agency for whatever gets taken up under that pact.

By the end of trade, RVNL shares had settled at Rs 226.87 on the NSE, up 0.63% for the day. That’s a modest but steady gain, and it comes on a day when the broader Nifty index itself closed lower.

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