Ircon International JV Secures Rs 750 Crore Order from RVNL for Track Installation in Uttarakhand

Ircon International Limited (IRCON) commenced its business in 1976 as a railway construction company, it diversified progressively since 1985 as an integrated engineering and construction PSU specializing in large and technologically complex infrastructure projects in various sectors such as railways, highways, etc. The company has also been accorded Navratna status by the Government of India.

Ircon International Wins Major Railway Project

Ircon International (Indian Railway Construction International Ltd) has been awarded a Letter of Acceptance (LOA) for order from Rail Vikas Nigam Ltd (RVNL), the rail infrastructure major informed exchanges on Thursday, July 4. The project, valued at approximately Rs.750.82 crore, has been won by a joint venture between IRCON, Paras Railtech Private, and PCM Strescon Overseas Ventures. 

The LOA pertains to the “Design, supply, installation, testing, and commissioning of broad gauge ballastless track (BLT), supply of ballast, and installation of track (excluding supply of rails and track sleepers) between chainage 6+015 (FLS) to 125+200 (FLS) in connection with the New BG line between Rishikesh and Karanprayag (125 km) in the state of Uttarakhand, India.” 

Joint Venture Execution Plan

The project will be executed through a joint venture consisting of IRCON, Paras Railtech Private Limited, and PCM Strescon Overseas Ventures Limited, under the name IRCON-PARAS-PCM (JV). The responsibilities will be shared in the ratio of 60:25:15, respectively. The project is expected to be completed within 42 months.

Conclusion: Ircon International’s successful bid for the Rail Vikas Nigam Ltd (RVNL) project marks a significant milestone in India’s railway infrastructure development. Valued at Rs.750.82 crore, the project involves the design, supply, installation, testing, and commissioning of a broad gauge ballastless track in Uttarakhand. Through a joint venture with Paras Railtech Private and PCM Strescon Overseas Ventures, Ircon aims to complete the project within 42 months. The stock of IRCON Ltd. is currently trading at Rs.291.20 per share up by 4% from its previous day’s closing price.

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