Rail Vikas Nigam Limited has announced the receipt of a Letter of Award (LoA) worth ₹201 crores for the Wagon POH Workshop project. This significant contract award represents a major business development for the railway infrastructure company.

Contract Details

The company has secured the contract for the Wagon POH Workshop, which stands for Wagon Periodic Overhaul Workshop. The project details are outlined below:

Business Impact

This contract win adds to Rail Vikas Nigam Limited's growing portfolio of railway infrastructure projects. The Wagon POH Workshop project will involve the development of facilities for periodic overhaul and maintenance of railway wagons, which is a critical component of railway operations and safety.

The ₹201 crore contract represents a substantial addition to the company's order book and is expected to contribute to its revenue generation in the railway infrastructure segment. This development reinforces the company's position as a key player in India's railway development and modernization efforts.

Rail Vikas Nigam Limited (RVNL) has received a Letter of Acceptance from East Coast Railway for setting up a wagon Periodical Overhauling (POH) workshop with a capacity of 200 wagons at Kantabanji in Odisha. The project, valued at ₹201.23 crores excluding GST, involves constructing a dedicated facility for periodic overhauling of wagons with an 18-month completion timeline.

Project Specifications

The contract focuses on establishing a comprehensive wagon maintenance facility to enhance railway operational efficiency and safety in freight movement. Rail Vikas Nigam Limited was awarded the project as the sole bidder, demonstrating the company's specialized expertise in railway infrastructure development.

Regulatory Compliance

The company has disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure confirms that this work falls within the normal course of business for Rail Vikas Nigam Limited. The contract is classified as a domestic project with no related party transactions involved, and neither the promoter nor the promoter group has any interest in the entity awarding the contract.

Business Impact and Market Performance

This Letter of Acceptance strengthens RVNL's order book and reinforces its position in the railway maintenance infrastructure sector. The wagon POH workshop will enhance railway maintenance capabilities in the East Coast Railway zone, supporting improved operational efficiency of the railway network. As a Government of India enterprise, RVNL specializes in project implementation for rail infrastructure, including construction of new lines, doubling, gauge conversion and electrification works.

Shares of Rail Vikas Nigam Limited closed at ₹342.55, down 4.16% for the day, reflecting market movements despite the positive project announcement.