Mumbai, Aug. 3 -- Rail Vikas Nigam, a state-owned infrastructure developer, has received a Letter of Acceptance from East Central Railway for an engineering, procurement and construction project valued at Rs3,589.7 million (mn), inclusive of 18 per cent GST. The acceptance, issued on 28 July 2026, covers doubling works on a northern Bihar route and forms part of the company's routine project portfolio. The company said the award aligns with its mandate to expand railway capacity through capital works.
The order requires construction of the Sitamarhi-Raxaul doubling in the Samastipur division, covering a total stretch of 41.04 km between Kundawa Chainpur, excluding, and Raxaul, excluding. The scope comprises earthwork, blanketing, minor and major bridges, station and other buildings, platform construction, level crossing works and miscellaneous civil works intended for 25 tonne (t) Indian Railway Standard Loading. The project will be executed under standard contract conditions.
East Central Railway has awarded the contract to RVNL as a domestic contracting authority and the company reported that neither the promoter nor promoter group companies have any interest in the awarding entity, confirming the contract is not a related party transaction. The stipulated execution period for the assignment is 1,095 days. Earlier this year RVNL had been the lowest bidder for a North Eastern Railway project valued at Rs1,294.6 million (mn).
The company stated the work is in the normal course of business and will involve design, supply, erection, testing and commissioning activities where required. Market reaction saw shares of Rail Vikas Nigam Ltd close at Rs221.25, down by Rs2.75, or 1.23 per cent, on the BSE. RVNL indicated that the infrastructure interventions aim to improve line capacity and operational resilience, thereby supporting regional connectivity and freight movement. The order is intended to support capacity upgradation and enhanced traction and freight handling on the corridor.
Published by HT Digital Content Services with permission from Construction World.