NEW YORK, December 30, 2025, 00:07 ET
- Rail Vikas Nigam (RVNL) said it was named the lowest bidder (L1) for a Rs 201.23 crore wagon POH workshop project from East Coast Railway.
- The works tender calls for setting up a 200-wagon maintenance facility at Kantabanji, with an 18-month execution timeline.
- RVNL shares closed down 5.25% on Monday after swinging between Rs 400.90 and Rs 366.15, exchange data showed.
Rail Vikas Nigam Ltd (RVNL) said it has emerged as the lowest bidder (L1) for a Rs 201.23 crore ($2.01 billion rupees) works tender from India’s East Coast Railway to set up a wagon maintenance workshop at Kantabanji. 1
The development matters because RVNL’s earnings are closely tied to the pace of Indian Railways contracting, and each new tender win can add near-term visibility to its order pipeline.
It also lands at a time when investors have been quick to reprice infrastructure stocks on incremental order announcements, especially for companies that derive most of their business from public-sector clients.
The project involves setting up a wagon Periodic Overhaul (POH) workshop with a capacity of 200 wagons. POH is heavy, scheduled maintenance that restores freight wagons after a fixed service cycle.
In Indian public procurement, L1 refers to the lowest-priced bidder, typically placing that firm first in line for an award, subject to tender conditions and final checks.
RVNL said the project cost is Rs 201.23 crore excluding goods and services tax (GST) and the work is to be executed within 18 months. The company said the order is domestic and not a related-party transaction, adding that its promoter group has no interest in the awarding authority. 2
Shares of RVNL last traded at Rs 367.60 on the BSE on Monday, compared with a previous close of Rs 387.95, EquityBulls data showed. The stock hit an intraday high of Rs 400.90 and a low of Rs 366.15, with about 4.0 million shares changing hands across roughly 48,700 trades. 3
For investors, the tender is another data point on whether RVNL can keep converting rail-sector capital spending into fresh project flow, even as the stock has been volatile in recent sessions.
Workshops like POH facilities are central to freight operations because they determine how quickly wagons return to service after major maintenance, influencing fleet availability and turnaround times.
RVNL competes for rail infrastructure work with other government-linked contractors such as IRCON International and RITES, as well as private engineering and construction firms that bid for railway-linked EPC work.
