Rail Vikas Nigam Limited (RVNL) has announced a significant development in its infrastructure portfolio. The company has received a Letter of Acceptance (LOA) from the National Highway Authority of India (NHAI) for the construction of a 6-lane Access Controlled Road connecting Sabbavaram bypass to Sheelanagar junction on NH 516C in Andhra Pradesh. The project will be executed on a Hybrid Annuity Mode (HAM), valued at ₹554.64 crore (excluding GST).
The project timeline is 730 days from commencement and is considered within the normal course of business for RVNL.
This project reaffirms RVNL’s standing in India’s infrastructure growth, particularly in high-value transportation corridors like Visakhapatnam.
Effect on Share Market
- Positive Sentiment: Investors may view this as a growth catalyst, boosting RVNL’s revenue visibility.
- Short-Term Impact: Possible uptick in share price due to increased investor confidence.
- Medium to Long-Term: Revenue realization post-execution will strengthen the company’s financials, especially with continued government infrastructure spending.
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