Railway Stock, RVNL shares surges over 8% amid securing contract from BSNL for Bharat Net Project
The project will follow a Design-Build-Operate-Maintain (DBOM) model and will be executed in partnership with consortium members HFCL and ATS, with RVNL serving as the lead member.
Railway Stock, RVNL shares surges over 8 amid securing contract from BSNL for Bharat Net Project
Rail Vikas Nigam shares saw an increase of 5.62% on January 16, 2025. The stock opened with a gap up, gaining 4.33%, and reached an intraday high of Rs 398, marking a rise of 7.02% during the trading session.
State-run Rail Vikas Nigam Ltd announced receiving a Letter of Acceptance from Bharat Sanchar Nigam Ltd (BSNL) for the development, upgradation, and maintenance of the middle-mile network of BharatNet.
According to the exchange filing made, "A Letter of Acceptance has been received from Bharat Sanchar Nigam Limited (BSNL) for the Development (Creation, Upgradation and Operation & Maintenance) of the Middle mile network of Bharat Net on Design Build Operate and Maintain (DBOM) Model.
Shares of the PSU Company are trading higher by 8.4% at Rs 402.20 with dividend yield standing at 0.52%. The market capitalization stood at Rs 84.07K crore.
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The project will follow a Design-Build-Operate-Maintain (DBOM) model and will be executed in partnership with consortium members HFCL and ATS, with RVNL serving as the lead member. The total contract value stands at Rs 3,622.14 crore, including operational expenses for a 10-year maintenance period.
The project will involve a three-year construction phase followed by a maintenance period split into two five-year intervals. The total contract value stands at Rs 3,622.14 crore, including operational expenses for a 10-year maintenance period.
The project will involve a three-year construction phase followed by a maintenance period split into two five-year intervals.
During the maintenance phase, payments will be made at 5.5% of capital expenditure for the first five years and 6.5% for the next five years. This project forms part of RVNL's regular business activities.
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