Rail Vikas Nigam Share Price

Rail Vikas Nigam Limited (RVNL) is a premier PSE under the Ministry of Railways, Government of India. Established in 2003, RVNL plays a pivotal role in the development and enhancement of India's railway infrastructure. The company operates with a clear mission to transform the country's railway network, expand connectivity, and ensure the efficient and seamless movement of people and goods across the nation.

RVNL is headquartered in New Delhi and operates as a project executing agency, specializing in the planning, designing, and execution of critical railway projects. The company's primary focus lies in new line projects, doubling of tracks, gauge conversion, electrification, and the redevelopment of railway stations.
 

History and Milestones 

Rail Vikas Nigam Limited (RVNL) was commenced as a Public Sector Undertaking on January 24, 2003, driven by the vision of the late Bharat Ratna Shri Atal Bihari Vajpayee, the then Hon’ble Prime Minister of India. The inception of RVNL was inspired by the need to address the infrastructure deficit in the Indian Railways. In his speech from the Red Fort on August 15, 2002, the Hon’ble Prime Minister announced the National Rail Vikas Yojana (NRVY), and on December 26, 2002, he formally launched NRVY. To implement NRVY effectively, RVNL was incorporated under the Companies Act 1956 with two primary objectives: the swift execution of rail infrastructure projects for capacity augmentation and the mobilization of extra-budgetary resources for Special Purpose Vehicle (SPV) projects.

Operational activities of RVNL commenced in 2005 with the appointment of its Board of Directors. In recognition of its significant contributions, the company was granted Miniratna status in September 2013. Over the years, RVNL has consistently earned an "Excellent" rating from the Department of Public Enterprises for nine consecutive years and has been ranked as the top Railway PSE four times in the last five years.

During the financial year 2019-20, the company's turnover witnessed a remarkable increase of 44.44%. RVNL's authorized share capital stands at Rs. 3000 crore, with a paid-up share capital of Rs. 2085 crore. After divesting 12.16% of its stake through an IPO, the company got listed.

RVNL's mandate includes several key functions, such as project development, financing, and implementation of rail infrastructure projects. The company aims to mobilize financial and human resources efficiently, ensuring timely project execution with minimal cost escalation. Encouraging public-private participation in rail-related projects is also one of RVNL's objectives. Furthermore, the company is committed to sustainable development and environment-friendly construction practices in its projects across the country.

In pursuit of its functions, RVNL is authorized to arrange financial resources from various institutions and funding agencies. The company is actively involved in project execution, including the creation of project-specific SPVs, and may explore commercialization opportunities where feasible. Upon completion of a railway project, RVNL hands over its operation and maintenance to the respective Zonal Railway under specific financial arrangements. To generate revenue, RVNL may undertake projects on a BOT (Build-Operate-Transfer) basis, where the railways department pays Access Charge/User Charge for utilizing the infrastructure.
 

Awards and Recognitions 

Over the years, RVNL has successfully executed numerous projects, transforming the railway landscape of India. It has contributed significantly to the enhancement of the railway network's capacity, operational efficiency, and safety. Some of the notable achievements of RVNL include:

● Development of New Railway Lines: RVNL has been instrumental in establishing new railway lines, opening up connectivity to hitherto unreached regions and boosting economic activity in those areas.

● Doubling and Gauge Conversion: To ease congestion and improve the efficiency of rail transportation, RVNL has taken up the task of doubling existing railway tracks and converting narrow gauge tracks into broad gauge.

● Electrification: RVNL has actively contributed to the electrification of railway lines, reducing dependence on fossil fuels, lowering operational costs, and reducing carbon emissions.

● Station Redevelopment: RVNL has undertaken the redevelopment of various railway stations, providing modern amenities and better facilities for passengers, thereby enhancing the overall travel experience.

Important Facts

● Owner: Government of India (78.20%)
● Number of employees: 500+
● Total equity: ₹ 5,631.41 Cr (2022)
● Total assets: ₹ 19,121.42 Cr (2022)
● Website: rvnl.org/home 

The company operates as a project executing agency and does not own or operate any trains or rolling stock. Its sole focus is on infrastructure development. Moreover, RVNL is listed on the stock exchanges, making it a unique opportunity for investors to participate in the growth of India's railway sector. Its projects contribute not only to the railway sector's growth but also to the overall economic development of the regions it serves.