Shares of Rail Vikas Nigam Limited (RVNL) jumped over 4 percent on Wednesday after the company announced its appointment as project implementation agency for the UTF Harbor Project in Maldives. In a filing to the stock exchanges on Tuesday, RVNL said that this is a strategic project of Government of India and the project cost is estimated at Rs 1,544.60 crore.

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The state-owned company received the Letter of Authorisation (LOA) on December 27 for appointment as project implementation agency. RVNL has received the contract from the Ministry of External Affairs. The contract received by the company includes development of UTF Harbor in Maldives within 24 months.

RVNL is engaged in the business of implementing various types of rail infrastructure projects assigned by the Ministry of Railways. This includes doubling, gauge conversion, new lines, railway electrification and major bridges, among others.

Last week, the company announced that it has been awarded a contract for the construction of a depot cum workshop from Gujarat Metro Rail Corporation Ltd.

The total awarded cost of the project is around Rs 199 crore excluding taxes, duties, and provisional sum.

Earlier this month, RVNL announced that it formed a joint venture company with Kyrgyzindustry-OJSC (Open Joint Stock Company) for the development of infrastructure in Kyrgyzstan.

The main purpose behind forming this joint venture is the construction of rail, road, and other infrastructure in Kyrgyzstan, a land-locked country in Central Asia. It would have a 50 percent shareholding in the joint venture with Kyrgyzindustry-OJSC.

First Published:Dec 28, 2022 12:16 PM IST