Rail Vikas Nigam: About and Its Recent Project

Introduction

Rail Vikas Nigam Limited is also a Category-I Mini-Ratna CPSE that falls under the Ministry of Railways. It was founded in 2003 to quickly complete projects and meet the nation’s expanding infrastructure needs. RVNL acts as the construction division of the Ministry of Railways for project implementation and the expansion of transportation infrastructure.

The company carries out projects and creates project-specific SPVs from conception to commissioning. It is part of RVNL’s mandate to mobilize extra-budgetary resources (EBRs) through these SPVs using a combination of equity and debt.

Founded on January 24, 200, is RVNL. It is a byproduct of the National Rail Vikas Yojana (NRVY) implementation, which the then-prime minister announced during his Independence Day speech, Shree Atal Bihari Vajpayee, on August 15, 2002, from the ramparts of the Red Fort. On December 26, 2002, the Hon’ble PM formally unveiled NRVY to close the country’s rail system gap. On March 29, RVNL began its IPO, and on April 11 of that same year, it went public.

About RNVL

The vision of the then-honorable prime minister, Bharat Ratna Late Shri Atal Bihari Vajpayee, served as the foundation for incorporating RVNL as a public utility on January 24, 2003. The then-honorable prime minister wanted to fill the infrastructural gap in Indian Railways. Therefore he introduced the National Rail Vikas Yojana in his address from the Red Fort on August 15, 2002. On December 26, 2002, the Hon. Prime Minister officially announced the NRVY. To carry out the NRVY, RVNL was incorporated under the Companies Act of 1956 with the dual goals of implementing projects relating to the creation and expansion of rail infrastructure capacity on a fast-track basis and raising additional budgetary resources for SPV projects.

The company’s operations got underway in 2005 when the board of directors was appointed. In September 2013, the corporation was given Miniratna status. RVNL has received the Department of Public Enterprises’ “Excellent” rating for nine years running. In addition, RVNL has placed first among Railway PSEs four times in the past five years.

For the fiscal year 2019–20, the company’s turnover climbed by 44.44%. With a paid-up share capital of Rs. 2085 cr., the firm has an Rs. 3000 cr. It authorized share capital. After selling its 12.16% ownership in the company through an IPO, the company was listed.

Role of RNVL

The following tasks have been given to RVNL:

• Setting up the Projects’ financial resources. The RVNL can contact banks, financial institutions, the domestic market, and bilateral and multilateral funding agencies.

• Taking on project development and work execution

• If necessary, develop project-specific SPVs for individual works.

• Project commercialization wherever it is deemed required and possible

• The concerned Zonal Railway shall take on its operation and maintenance after a Railway project by RVNL is finished, subject to a particular financial arrangement.

• The projects could be carried out by RVNL under a BOT concept, with the Ministry of Railways paying an access fee or user fee.

Recent Chennai Metro Project:

During the afternoon session, the price of Rail Vikas Nigam Limited (RVNL) shares slightly increased after it was revealed that they had been chosen for the Rs 1,134.1 billion Chennai Metro Rail project.

This project includes a 10-kilometer elevated viaduct, nine elevated metro stations, and a stabling viaduct. As of 2.11 p.m. on the BSE, RVNL was up Rs 1.30, or 1.85 percent, to Rs 71.65. Throughout 24 hours, it fluctuated between a high of Rs. 72.70 and a low of Rs. 70.30.

On the strength of a 21.9 percent increase in net sales to Rs 4,908.90 crore in the third quarter of FY23 compared to Q2 FY2, RVNL saw a 36.5 percent rise in its consolidated overall profit to Rs 381.22 crore. The Ministry of Railways has given RVNL the task of carrying out rail infrastructure projects, such as doubling, gauge conversion, new lines, electrification, significant bridges, workshops, production facilities, and sharing freight revenue with the railways.