IAS Gyan

Daily News Analysis


29th July, 2023 Economy

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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.


  • 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


Q. What is the primary objective of Rail Vikas Nigam Ltd (RVNL)?

A) To provide passenger transportation services

B) To construct and develop railway infrastructure projects

C) To operate and manage the Indian Railways network

D) To manufacture locomotives and rolling stock

Answer: B

Explanation: To construct and develop railway infrastructure projects. RVNL serves as the construction arm of the Ministry of Railways in India and is responsible for implementing various railway infrastructure projects to enhance capacity and modernize the rail network.