Rail Vikas Nigam Limited’s shares were up 2.26 per cent after the company secured a Letter of Acceptance (LOA) from the Central Railway. The LOA features the construction of four tunnels, with a total length of 1.6km with ballastless track, construction of Bridges, supply of Stone ballast, Track linking, and side drain retaining wall in the Dharakoh-Maramjhiri section in connection with the third line. The time period for execution is 18 months and the of the order amounts to ₹311.17 crore.
The company also disclosed that the Ministry of Railways has initiated actions against one of RVNL’s Special Purpose Vehicles (SPVs), Kinet Railway Solutions Limited. The Ministry of Railways has imposed a penalty of ₹7.5 crore for violating the clause of the Manufacturing cum Maintenance agreement (MCMA). As one of the promoters of M/s. Kinet Railway Solutions Limited, Rail Vikas Nigam Limited has covered the penalty amount on behalf of the SPV.
The shares rose 2.26 per cent to ₹160.45 at 10.33 am on the BSE.