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Published on 28/03/2019 1:04:08 PM | Source: HDFC Securities Ltd

IPO Note - HDFC Securities

Posted in IPO Reports| #IPO #HDFC Securities

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Background & Operations:

Rail Vikas Nigam Ltd (RVNL) is a wholly owned government company, a Miniratna (Category – I) Schedule ‘A’ Central Public Sector Enterprise, incorporated by the Ministry of Railways (“MoR”) as a project executing agency working for and on behalf of MoR. It was incorporated with the objective to undertake rail project development, mobilization of financial resources and implementation of rail projects pertaining to strengthening of golden quadrilateral and port connectivity and raising of extra- budgetary resources for project execution. However, in 2004, the MoR decided that the Company should restrict itself to project execution.

The role of its Company for mobilization of finances is restricted to forming of project specific SPVs with private participation. It is in the business of executing all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable stayed bridges, institution buildings etc. Since RVNL’s inception in 2003, MoR has transferred 179 projects to it of which 174 projects are sanctioned for execution. Out of these, 72 projects have been fully completed totalling to Rs 205,672.80 million and the balance are ongoing.

It has an order book of Rs 775,042.80 million as on December 31, 2018 which includes 102 ongoing projects. During the financial year ending March 31, 2018, it has completed a total of 885.50 rkm of project length which included 315.20 rkm of doubling and 425 rkm of railway electrification.

 

RVNL’s activities under the various plan heads can be classified as under:

New lines:

This includes augmenting the rail network by laying new lines. The objective of laying new lines includes achieving seamless multi-modal transportation network across the country and connecting remote areas.

 

Doubling:

Doubling involves the provision of additional lines by way of doubling the existing routes to enable the Indian Railways to ease out traffic constraints of single line or construction of 3rd/4th line to increase the charted capacity. The Company is a significant contributor to the doubling projects and has been contributing to approximately one third of the total doubling being completed / commissioned on Indian Railways for the last three years. (Source: CARE Report)

 

Gauge conversion:

This includes conversion of meter gauge lines to broad gauge railway lines.

 

Railway electrification:

This includes electrification of current un-electrified rail network and electrification on the new rail network.

 

Metropolitan transport projects:

This includes setting up of metro lines and suburban network in metropolitan cities.

 

Workshops:

This includes manufacturing facilities, and workshops for repairing and manufacturing rolling stock.

 

Others:

This includes but is not limited to construction of traffic facilities, railway safety works (building of sub-ways in lieu of crossings), other electrification works, training works, surveys, construction of bridges including rail over bridges, etc.

RVNL generally works on a turnkey basis and undertake the full cycle of project development from conceptualization to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management, etc. and all stages of project execution upto the stage of commissioning of the new railway lines. Its major client is the Indian Railways. Its other clients include various central and state government ministries, departments, and public sector undertakings.

 

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