RVNL Signs Agreement with Israeli Firm for Infrastructure Projects

Rail Vikas Nigam Ltd (RVNL) surged 9% amid a correction in the market on July 19, after the railway RVNL said it has signed a Memorandum of Understanding (MoU) with Israeli firm United Construction Limited to support each other to get the projects in the field of Railways, MRTS, Tunnels, Roads (Highways & Expressways), Bridges, Building Works, Airports, Ports, Irrigation, Power Transmission and Distribution Sector, Solar Sector, Wind Sector in Israel. Due to this international agreement, the stock has shown a significant move. Additionally, RVNL settled the dispute between KRCL and the Ministry of Railways.

RVNL resolves disputes between KRCL and MoR:

RVNL settled the dispute between KRCL (a JV/SPV of RVNL with RVNL’s share of 49.76%) and Ministry of Railways (MoR). KRCL has informed that the honorable tribunal has passed an award of Rs 584.22 crore in favor of the claimant (KRCL).

RVNL, its subsidiaries, and joint ventures are engaged in the business of implementing various types of rail infrastructure projects assigned by the Ministry of Railways, including doubling (including 3rd and 4th lines), gauge conversion, new lines, railway electrification, major bridges, workshops, production units, and sharing of freight revenue with railways as per the concession agreement entered into with the Ministry of Railway. RVNL successfully constructed major workshops for Indian Railways in a fast-track mode. RVNL’s growth as a major provider of rail infrastructure makes it possible to secure rail infrastructure projects overseas.

Impact of international agreements on RVNL stock: 

RVNL stock moved 9% up on Friday after signing an MoU for an international agreement with Israel. Today, the stock is also up by 2%, trading at Rs. 626 per share with a high of Rs. 628.

Conclusion: RVNL is closely working with the Ministry of Railways and delivering all the projects quickly. An international agreement has opened up a new opportunity in the railway industry, with RVNL playing a vital role.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.