Rail Vikas Nigam Limited (RVNL) has been granted Navratna status by the Department of Public Enterprises, as per a filing made by the company on Monday. The Navratna status enables state-controlled firms to receive investments up to Rs 1,000 crore. With RVNL’s inclusion, India now has a total of 15 Navratnas including Bharat Electronics Ltd, Hindustan Aeronautics Ltd, and Oil India Ltd.
RVNL operates on a turnkey basis and manages the entire project development cycle from conception to commissioning, including design, estimating, tendering and awarding of contracts, contract management, and more.
RVNL’s asset-light business model enables it to keep its fixed asset base lower, resulting in a less-stressed balance sheet and lower inventory days. RVNL is a project-executing agency working on behalf of the Ministry of Railways (MoR) and has strong order book visibility, which is expected to play a crucial role in the development of railway infrastructure in India.
RVNL management anticipates a compound annual growth rate (CAGR) of over 20% in revenue over the next few years, propelled by strong order book visibility and new order inflows.
Last month, the joint venture of Transmashholding (TMH) and RVNL emerged as the lowest bidder for the manufacturing and maintenance of 200 lightweight Vande Bharat trains. The consortium offered a bid of approximately Rs 58,000 crore, with the cost of one train set estimated at Rs 120 crore.
In addition, earlier this month, RVNL in consortium with Siemens India, emerged as the lowest bidder (L1) for the Mumbai Metro line 2B project of the Mumbai Metropolitan Region Development Authority (MMRDA). The estimated cost of the project is approximately Rs 378.16 crore.
