Team Blitz India
NEW DELHI: Rail Vikas Nigam Limited (RVNL) has been promoted to ‘Navratna’ category of Central Public Sector Enterprises (CPSE) from Category-I Miniratna. This means the company will have more autonomy in terms of investment, setting up joint venture and other financial decisions.
“Finance Minister Nirmala Sitharaman has approved the upgradation of RVNL to ‘Navratna’ category,” a media report said on April 27.
RVNL becomes the 13th Navratna amongst the CPSEs. RVNL is a Ministry of Railways CPSE with an annual turnover of Rs 19,381 crore and net profit of Rs 1,087 crore for the year 2021-22.
Analysts noted that the ongoing mega push in rail capex will benefit the entire industrials value chain over this decade.
The recent optimism on the railway-linked stocks has lifted RVNL shares by 54 per cent over five consecutive trading sessions, before falling on April 27.
Siemens, along with RVNL, was part of a consortium that recently won two separate orders from the Gujarat Metro Rail Corporation. The current railway infrastructure spending should help RVNL improve margin and growth.
