Rail Vikas Nigam Limited has announced the receipt of a Letter of Award (LOA) from National Mineral Development Corporation (NMDC) for a comprehensive township development project in Chhattisgarh. The company disclosed this development to stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, marking a significant expansion in project scope and value.

Updated Project Details and Scope

The awarded contract involves the development of a complete township in Kirandul, Chhattisgarh, representing a substantial infrastructure development project that has expanded beyond the initial residential tower construction. The project specifications demonstrate the company's enhanced role in comprehensive urban development.

Regulatory Compliance and Disclosure

Rail Vikas Nigam Limited made the announcement pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company emphasized that this project falls within the normal course of business operations, indicating alignment with its core competencies in infrastructure development.

The disclosure included a comprehensive declaration as per SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, providing detailed project information and compliance confirmations through Annexure A.

Enhanced Contract Framework

The updated agreement operates under general contract conditions with expanded scope and timeline. Key aspects of the revised contractual arrangement include:

Strategic Significance and Growth

This enhanced contract award significantly strengthens Rail Vikas Nigam Limited's position in the infrastructure development sector, expanding from residential construction to comprehensive township development. The project value increase from ₹284.52 crore to ₹371.69 crore reflects the expanded scope and the company's growing capabilities in handling large-scale urban development projects.

The extended 21-month execution timeline, compared to the previous 16-month period, accommodates the comprehensive nature of township development, including infrastructure, utilities, and community facilities. The inclusion of all taxes in the ₹371.69 crore project value provides complete financial transparency and eliminates potential cost variations during the extended execution period.

Rail Vikas Nigam Limited has received the Letter of Acceptance (LOA) from Central Railway for a significant EPC project worth ₹270.22 crore. The contract involves comprehensive design, supply, erection, testing and commissioning of traction substation infrastructure for the Daund-Solapur railway route, marking another milestone in the company's railway electrification portfolio.

Project Specifications and Scope

The comprehensive project encompasses the development of 220/132/55 KV traction substation, sectioning posts and sub-sectioning posts in 2 x 25 KV traction system with Scott Connected Transformer configuration. The infrastructure development aims to meet the 3000 MT loading target on the Daund-Solapur sections of Central Railway.

Technical Infrastructure Development

The project involves sophisticated electrical infrastructure including traction substations, sectioning posts (SPs) and sub-sectioning posts (SSPs) designed to support heavy freight operations. The Scott Connected Transformer system represents advanced technology for railway electrification, ensuring efficient power distribution for the targeted 3000 MT loading capacity.

The EPC (Engineering, Procurement and Construction) mode of execution demonstrates the comprehensive nature of Rail Vikas Nigam's involvement, from initial design through final commissioning of the electrical infrastructure.

Regulatory Compliance and Business Impact

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (LODR) Regulations, 2015, confirming that this work falls within the normal course of business operations. The project represents a domestic contract with no related party transaction implications, ensuring transparent business practices.

This LOA receipt reinforces Rail Vikas Nigam's expertise in railway electrification projects and strengthens its position in India's railway infrastructure development sector. The 24-month execution timeline provides a clear framework for project completion, contributing to the modernization of the Daund-Solapur railway corridor and enhanced operational efficiency for Central Railway's freight operations.