Rail Vikas Nigam up over 7% after bagging NHAI construction order to connect Kakinada Port to NH16

Shares of Rail Vikas Nigam Limited (RVNL) soared over seven percent on Monday after the company bagged a contract for the construction of a four-lane highway in Andhra Pradesh from the National Highways Authority of India (NHAI). The highway will connect Samarlakota and Achampeta Junction.

RVNL's Director-Operations Rajesh Prasad, told CNBC-TV18 that the contract is a part of Kakinada port to NH-16 connectivity in Andhra Pradesh under Bharatmala Pariyojana in EPC (engineering, procurement and construction) mode at a cost of Rs 408 crore.

Talking further about the business, Prasad said that the company has consciously moved towards the road infrastructure segment in the last year.

“It is only one year back we decided that we should have the verticals in the road sector and we should start bidding in the market. We opened a business development cell; our costing cell was part of this. We strengthen the design cell. We are in the process of making the procurement cell. We have made one legal cell. So we are fully prepared to enter into the market," he said.

Rail Vikas Nigam is an infrastructure project execution company that undertakes project development, financing and implementation of rail infra projects. Its present functioning is along the lines of a project management company.