Rail Vikas Nigam Limited (RVNL) is an Indian central public sector enterprise which works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. It was incorporated in 2003 to meet the country's surging infrastructural requirements and to implement projects on a fast-track basis. It is a ‘Navratna’ CPSE in India under the administrative control of the Indian Ministry of Railways.
The organization undertakes project execution from concept to commissioning and creates project-specific SPVs. RVNL’s mandate includes the mobilization of extra-budgetary resources (EBRs) through a mix of equity and debts via these SPVs.
History
Rail Vikas Nigam Limited (RVNL) was established to implement the National Rail Vikas Yojana (NRVY), a project to develop railway infrastructure in India. The NRVY was announced by Prime Minister Atal Bihari Vajpayee from the ramparts of the Red Fort during the Independence Day speech on 15 August 2002. The NRVY was formally launched by Vajpayee on 26 December 2002, and RVNL was incorporated under the Companies Act, 1956 on 24 January 2003. RVNL's two main objectives are to augment the capacity of rail infrastructure and raise extra budgetary resources for special purpose vehicle projects.
RVNL opened its initial public offering (IPO) on 29 March 2019. It was the third railways-related PSU to initiate an IPO, after RITES and IRCON. The company offered a 12% stake at a price range of 17-19 per share. The IPO was subscribed 1.78 times by close on 3 April earning . RVNL was listed on the Bombay Stock Exchange and the National Stock Exchange on 19 April 2019.
List of Manufacturing Units(Industry 4.0 complaint)
Subsidiaries
High Speed Rail Corporation of India Limited
The High Speed Rail Corporation of India Limited (HSRC) is an SPV which was incorporated in 2012 as a subsidiary of RVNL to implement high-speed rail projects in India.
Kinet Railway Solutions Ltd
RVNL has incorporated a private company Kinet Railway Solutions Ltd which will act as the SPV that will sign the manufacturing-cum-maintenance agreement with the Ministry of Railways.
Kyrgyzindustry-RVNL
RVNL established a 50:50 joint venture company, named Kyrgyzindustry-RVNL, with Kyrgyz company Kyrgyzindustry. The company will develop rail, road, and other infrastructure in Kyrgyzstan. RVNL informed the Securities and Exchange Board of India (SEBI) of the establishment of the joint venture on 10 December 2022.
Special Purpose Vehicles
Kutch Railway Company Ltd
RVNL owns 50% equity in this project. The project length is 301 km and is for gauge conversion of Palanpur-Gandhidham section. Currently RVNL is doubling Samakhiali-Palanpur (248 km) anticipating increased traffic flow from Mundra and Deendayal Ports.
Bharuch Dahej Railway Co Ltd
RVNL is the largest stakeholder in this SPV with 35.46% equity. The project length is 63 km and is for gauge conversion.
Krishnapatnam Railway Co Ltd
RVNL is the largest stakeholder in this SPV with 49.76% equity. The project length is 113.2 km and is for construction of new line from Obulaparivalli to Krishnapatnam port. Complete connectivity was provided in June 2019.
Haridaspur Paradip Railway Co Ltd
RVNL is the largest equity shareholder with 30%. This SPV is for a new 82 km line from Haridaspur to Paradip Port. This commercial route became operational on 30.07.2020
Angul Sukinda Railway Ltd
RVNL is the largest stakeholder in this SPV with 32.16% equity. This is for a new 102.42 km railway line from Angul-Sukinda. 80% of the project has already been completed and the commercial operation will begin shortly.
New SPVs under formation
Indian Port Rail Corporation Limited (IRPCL) RVNL is participating in the formation of IRPCL. This is a SPV under the Ministry of Shipping, with the stakeholders being RVNL and 12 major ports. The initial authorised capital of the SPV is Rs 500 crore with RVNL's equity participation being Rs 10 crore only or 10% of the initial subscribed share capital.
The mandate of the SPV is to enhance rail connectivity to the various Ports in the country. This includes maintenance of Port Railways along with up-gradation, modernisation and capacity augmentation as and when required.