Rail Vikas Nigam Limited (RVNL) has secured a Rs 9.03 billion (bn) contract from SJVN Thermal to construct a permanent siding and associated rail link for the 1,320 megawatt (MW) Buxar Thermal Power Project in Bihar. The order, awarded through a letter of award, is valued at Rs 903 crore inclusive of GST and carries a 36-month execution period as disclosed in an exchange filing. The work constitutes Phase three of planned rail connectivity for the power plant and was awarded by a domestic entity, with RVNL stating that the transaction does not qualify as a related party deal.

The contract scope covers the construction of a permanent siding and an aerial connection by track running from the plant boundary to Chausa and Pawani Kamarpur at Buxar. RVNL described the project as falling within the normal course of its business and confirmed that there is no international component to the award. The company will mobilise resources to meet the execution timeline and align the work with project milestones at the plant.

Rail Vikas Nigam Limited is a Navratna central public sector enterprise under the Ministry of Railways that was incorporated on 24 January 2003 to implement the National Rail Vikas Yojana. The company undertakes new lines, gauge conversion, electrification, major bridges and metro corridors and also mobilises extra-budgetary resources through project-specific special purpose vehicles. RVNL is majority owned by the Government of India and completed its public listing in 2019.

RVNL’s shares were relatively flat in intraday trade on the day of the disclosure, with the stock down seven point five per cent in the previous month and down 35.44 per cent over the past year. The company will now proceed with detailed planning and coordination with the client ahead of construction works.