Railway Stock, IRFC shares hits over 3% after emerging L1 bidder for Rs 3,167 crore project in Jharkhand

The Shares of Railway PSU, Indian Railway Finance Corporation (IRFC), surged as much as 3.65% to Rs 140.50 apiece on the NSE in the opening deals on Wednesday, January 15, on emerging as the lowest bidder for a project in Jharkhand.

In an exchange filing, IRFC said it has emerged as the L1 bidder for financing Rs 3,167 crore for developing the Banhardih Coal Block in Latehar District, Jharkhand. This project is being undertaken by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a joint venture between NTPC Limited (74% equity stake) and Jharkhand Bijli Vitran Nigam Limited (26% equity stake).

An L1 bidder is the lowest bidder in a tender, bidding process, or procurement solicitation. The L1 bidder is selected based on the lowest cost to complete the work. PVUNL has allocated the Banhardih Coal Block as a captive coal source.

The company added that coal from the block would be transported to Chetar Station via Mine-Gain-Rail (MGR) and then to PVUNL's project site using Indian Railways.

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Shares of IRFC have gained nearly 5% in the past 12 months. Meanwhile, the company's board approved an interim dividend of Rs 0.80/share (or 8%) on the face value of Rs 10 for 2024-25.

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