RVNL shares in news as firm secures Rs 554.64-crore NHAI project 

Shares of Rail Vikas Nigam Ltd (RVNL), a Navratna PSU under the Ministry of Railways,  are in focus today as the firm has emerged as the lowest bidder for a significant Rs 554.64 crore project awarded by the National Highways Authority of India (NHAI).

The project involves constructing a six-lane access-controlled road connecting Sabbavaram bypass to Sheelanagar junction of NH-516C in Andhra Pradesh. This project is poised to enhance connectivity to Visakhapatnam Port, thereby boosting regional trade and logistics efficiency, and solidifying RVNL’s position within the infrastructure sector. 

The successful bid by RVNL marks a strategic move to diversify its operations beyond railways, enhancing its presence in the roads and highways sector, in line with the government’s infrastructure development initiatives. The project will be carried out under the Hybrid Annuity Model (HAM), a collaborative funding approach that shares investment risks between the government and the private sector. Such projects underscore RVNL's growing expertise in handling significant non-railway infrastructure ventures, showcasing its adaptability and potential to expand in various infrastructure domains. 

Ahead of this announcement, RVNL’s share price closed at Rs 330.80 on the BSE on Tuesday, reflecting a 1.40% decline. This project is expected to not only improve trade routes but also provide a logistical boost around Visakhapatnam. By securing the contract, RVNL continues to reinforce its strategic shift towards diversifying its portfolio, which aligns with national priorities to enhance the country’s infrastructure. The improved road connectivity will likely facilitate more efficient movement of goods, thereby contributing to the economic growth of the region.