New Delhi: Rail Vikas Nigam Limited (RVNL) has emerged as the lowest bidder for a Rs 358.97 crore railway infrastructure project from East Central Railway. The contract value includes 18 percent Goods and Services Tax (GST).
The project relates to the doubling of the Sitamarhi-Raxaul railway section in the Samastipur Division. RVNL disclosed the development in a stock exchange filing on Monday, July 20.
Project Scope
Under the engineering, procurement and construction (EPC) tender, RVNL will undertake railway doubling work between Kundawa Chainpur and Raxaul. The total length of the section covered under the project is 41.04 km.
The work will include earthwork, blanketing, construction of minor and major bridges, station buildings and other related structures. It also covers platform work, level-crossing work and several other supporting railway infrastructure activities.
The new railway section will be built according to the 25-tonne Indian Railway Standard Loading requirement. This will help the route handle heavier railway traffic and improve its overall capacity.
Completion Timeline
According to the filing, the project must be completed within 1,095 days, which is equal to around three years. East Central Railway is the entity that invited the tender.
The contract is domestic and will be executed under general contract conditions. RVNL said the project falls under the normal course of its business.
Lowest Bidder
Emerging as the lowest bidder, also called L1, generally places a company in a strong position to receive the final contract. However, the formal award may follow after the railway authority completes the required process and issues a letter of acceptance.
RVNL also clarified that its promoters, promoter group and group companies do not have any interest in East Central Railway. The proposed contract is not a related-party transaction.
The project strengthens RVNL’s railway construction portfolio and supports the government’s wider plan to expand track capacity, reduce congestion and improve train movement across important railway routes.
Disclaimer: This report is based on RVNL’s stock exchange filing and is for information only; it does not constitute investment advice.
