RVNL Share Price in Focus After Emerging as Lowest Bidder for NHAI Projects

Rail Vikas Nigam Limited share price traded at ₹335.85 at 9:40 AM on the NSE, up 1.57% from the previous close of ₹330.65. The stock opened at ₹340, reaching a high of ₹342 and a low of ₹334.30 in early trading.

RVNL Project Details

Rail Vikas Nigam Limited (RVNL) has achieved yet another milestone by emerging as the Lowest Bidder (L1) for a prestigious infrastructure project under the National Highway Authority of India (NHAI).

The project involves the construction of a six-lane access-controlled connectivity to Visakhapatnam Port Road from Sabbavaram Bypass of Anakapalli – Anandapuram Corridor to Sheelanagar Junction of NH 516C in Andhra Pradesh.

This construction will be undertaken under the Hybrid Annuity Mode (HAM) as part of the National Highway (O) initiative, the company said in a press release on the stock exchanges.

NHAI Project Significance

This infrastructure development is set to play a crucial role in enhancing road connectivity to Visakhapatnam Port, which is one of India’s key maritime trade hubs. By improving road access, the project aims to:

• Enhance traffic flow and reduce congestion along crucial transport corridors.
• Boost economic activity by facilitating smoother logistics and freight movement.
• Improve safety and efficiency in road transport with modern engineering solutions.

Understanding Hybrid Annuity Mode (HAM)

The Hybrid Annuity Mode (HAM) is a unique model introduced by the Government of India to strike a balance between Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT) models. Under HAM:

• The government bears 40% of the project cost during the construction phase.
• The remaining 60% is funded by the private partner, which is then recovered through annuity payments.
• This model ensures optimal risk-sharing between the government and private contractors, making it an attractive approach for large-scale infrastructure projects.

Conclusion

As India continues to expand its road and rail networks, companies like RVNL play a pivotal role in executing projects that drive economic progress.

The Visakhapatnam Port Road connectivity project is yet another step towards building a robust and efficient transportation ecosystem in the country.

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