RAIL VIKAS NIGAM LTD OFFER-FOR-SALE

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Context: The government is selling a 5.36% stake in RVNL through an offer-for-sale (OFS). The government currently holds a 78.20% stake in RVNL.

Details

• Rail Vikas Nigam Ltd. (RVNL) has received a strong response from institutional investors for its offer-for-sale (OFS).
• The government is divesting 5.36% of its stake in RVNL through the OFS.
• RVNL is engaged in the business of executing railway projects, including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges and institution buildings.

Rail Vikas Nigam Limited (RVNL)

• Rail Vikas Nigam Limited (RVNL) is an Indian central public sector enterprise that operates as the construction arm of the Ministry of Railways.
• It was established in 2003 with the primary objectives of implementing railway infrastructure projects and meeting the country's growing infrastructural demands on a fast-track basis.
• RVNL is classified as a 'Navratna' CPSE (Central Public Sector Enterprise) in India, operating under the administrative control of the Indian Ministry of Railways 

Key Points about Rail Vikas Nigam Limited (RVNL)

• RVNL's main objectives include augmenting the capacity of rail infrastructure and raising extra-budgetary resources (EBRs) for special purpose vehicle (SPV) projects.
• RVNL has several subsidiaries and SPVs for the implementation of various railway projects. Some of these include the High-Speed Rail Corporation of India Limited (HSRC), Kinet Railway Solutions Ltd, Kyrgyzindustry-RVNL, and more.
• RVNL creates project-specific SPVs to execute projects from concept to commissioning and mobilizes EBRs through a mix of equity and debts via these SPVs.
• It has implemented projects in the thematic areas of Health and Education, focusing on regions like West Bengal, Chhattisgarh, Jharkhand, Uttar Pradesh, Madhya Pradesh, Uttarakhand, and Odisha.
• Rail Vikas Nigam Limited has been rated as "Excellent" by the Department of Public Enterprises (DPE) for 11 consecutive years and has received awards for excellence in public-private partnerships and its response to Covid.

Overall, RVNL plays a crucial role in the development and expansion of railway infrastructure in India, contributing to the country's transportation sector and economic growth.

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NAVRATNA STATUS: https://www.iasgyan.in/daily-current-affairs/navratna-status

https://www.thehindu.com/business/Industry/rail-vikas-nigam-ltd-offer-for-sale-over-subscribed-institutional-buyers-place-bids-worth-2000-crore/article67129407.ece