Rail Vikas Nigam (RVNL) has formed a joint venture company with Kyrgyzindustry - Open Joint Stock Company to construct rail road and other infrastructure projects in Kyrgyz Republic.
RVNL in its statement, however, did not mention the cost of outlay for the project.The company said the purpose of entering into the agreement is to construct a rail road and implement other infrastructure projects in the Kyrgyz Republic.
According to the statement, the joint venture namely "Kyrgyzindustry-RVNL" is a Closed Joint Stock Company (CJSC) in which RVNL will hold 50% stake.
RVNL is a Category-I MiniRatna CPSE under the Ministry of Railways, Government of India. RVNL's mandate includes mobilization of extra budgetary resources through a mix of equity, and debt from banks, financial institutions, multilateral agencies like Asian Development Bank and bilateral agencies for project execution through PPP by formation of project specific SPVs for Port and Hinterland connectivity. RVNL can enter into and carry on business relating to creation and augmentation of capacity of rail infrastructure on fast track. As on 30 September 2022, the Government of India holds 78.20% stake in the company.
On a consolidated basis, the company's net profit rose 36.52% to Rs 381.22 crore on 21.94% increase in net sales to Rs 4,908.90 crore in Q2 FY23 over Q2 FY22.
Shares of RVNL dropped 4.67% to Rs 67.40 on Friday, 9 December 2022.
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