New Delhi, Dec 29 State-owned Rail Vikas Nigam Limited (RVNL) on Monday said it has emerged as the lowest bidder for a project awarded by East Coast Railway.
The project involves setting up a wagon periodical overhaul workshop at Kantabanji with a capacity to handle 200 wagons.
East Coast Railway is the awarding authority for the contract. RVNL said the total cost of the project, excluding goods and services tax, is Rs 201.23 crore.
The company was the sole bidder for the project, and the work is scheduled to be completed within 18 months.
“It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from East Coast Railway for ‘Setting up of Wagon POH Workshop of 200 Nos. Capacity at Kantabanji,’” the state-owned company said in its exchange filing.
“Project Cost excluding GST as Rs 201,23,47,556.55 awarded to Rail Vikas Nigam Limited as sole bidder,” it added.
Earlier this month, RVNL had also received another major order from Southern Railway. In a stock exchange filing, the company said it received a letter of acceptance for a traction power project worth Rs 145.35 crore.
This project includes the design, supply, erection, testing and commissioning of Scott-connected traction substations, power quality equipment, switching posts, a 2x25 kV feeding system, along with SCADA and automatic fault locator systems.
The work will be carried out in the Jolarpettai–Salem section of the Salem division.
RVNL said the traction power project is part of Indian Railways’ Mission 3000 MT freight-loading target.
The project will be executed over a period of 540 days and falls under the company’s normal course of business.
The company also clarified that the order was awarded by a domestic entity and that there is no promoter-group interest in Southern Railway, making it a non-related-party transaction.
Meanwhile, shares of Rail Vikas Nigam Limited ended lower on Monday. The stock closed at Rs 366.90 on the Bombay Stock Exchange, down by Rs 21.05, or 5.43 per cent.
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