About Rail Vikas Nigam Limited (RVNL)
COMPANY PROFILE: -
1.1 Establishment of RVNL
To bridge the infrastructure deficit on Indian Railways, the then Prime Minister, Bharat Ratna Shri Atal Bihari Vajpayee announced National Rail Vikas Yojana (NRVY) on 15th August 2002 in his address from the Red Fort. NRVY was formally launched by Hon’ble PM on 26th December 2002. To implement NRVY, RVNL was incorporated as an 100% owned PSU of Ministry of Railways (MoR) on 24-1-2003 with the twin objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis. RVNL became fully functional by March 2005.
RVNL functions as an extended arm of the Ministry of Railways working for & on behalf of MoR. It is empowered to act as an Umbrella SPV to undertake project development, resource mobilization etc. directly or by creating project specific SPVs or by any other financing structure found suitable. 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.
In August 2004, it was decided that the issue of raising funds from the market to meet capital expenditure required for execution of projects by RVNL will be entrusted to IRFC. Accordingly, the focus of raising EBR for projects by RVNL has been on creation of project specific SPVs which are discussed in Para 2 below.
RVNL has been granted Mini Ratna-I status on 19-9-2013.
The paid up Equity Capital of the Company is Rs 2085 crore.
1.2 Business Model: -
RVNL is carrying out planning, development, resource mobilization & execution of railway related projects on fast track:
- Projects to be executed by RVNL are assigned by the Ministry of Railways (MoR).
- Projects of other Central Ministries, State Governments and CPSEs also assigned to it.
- Powers have accordingly been delegated to RVNL to facilitate project execution.
- RVNL expenditure is largely dependent on the budgetary allocations by the Ministry of Railways.
- Projects are also being funded by EBR (IF), IRFC, ADB loan etc. through MoR.
The Revenue stream of RVNL is:
- A consolidated management fee (inclusive of supervision charges) based on the average supervision charges allowed to Zonal Railways (8.5%).
- RVNL pays dividend to MoR on the savings out of the consolidated management fee. For 2017-18, Rs 167.0 crore was paid as dividend and Rs 34.0 crore as tax on dividend which is 2.88% of project execution cost. Thus, the effective management fee of RVNL was only 5.62%.
1.3 Project Length Completed up to March, 2018: -
|
S. No.
|
Plan Heads
|
Completed
|
|
1.
|
New Line
|
230.82 km
|
|
2.
|
Gauge Conversion
|
1676.30 km
|
|
3.
|
Doubling
|
2668.52 km
|
|
4.
|
Railway Electrification
|
3262.07 km
|
|
5.
|
MTP
|
42 km
|
|
Total
|
7879.71 km
|
|
6.
|
RE as part of Doubling/GC/NL
|
1729.87 km
|
|
7.
|
Workshop projects
|
6
|
|
8.
|
Cable Stayed Bridge
|
1
|
1.4 Physical Performance (last five years): -
|
Year
|
New Lines
|
Doub-ling
|
Gauge Conversion
|
Railway Electrification
|
MTP
|
Total
|
RE as part of other projects
|
|
2013-14
|
0
|
262
|
0
|
204
|
0
|
466
|
219
|
|
2014-15
|
0
|
259
|
0
|
217
|
0
|
476
|
155
|
|
2015-16
|
17
|
353
|
0
|
328
|
0
|
698
|
230
|
|
2016-17
|
0
|
356
|
0
|
358
|
0
|
684
|
200
|
|
2017-18
|
17
|
315.2
|
86.2
|
425
|
42
|
885.4
|
153.87
|
1.5 Financial Performance (last five years): -
|
Year
|
Turnover
(Rs crore)
|
% Increase in Turnover
|
Profit After Tax
(Rs crore)
|
Dividend paid
(Rs crore)
|
|
2013-14
|
2493
|
17.76
|
157
|
31.5
|
|
2014-15
|
3142
|
26.03
|
215
|
37.2
|
|
2015-16
|
4541
|
44.53
|
304
|
115.1
|
|
2016-17
|
5920
|
30.37
|
385
|
142
|
|
2017-18 (provisional)
|
7555
|
27.62
|
445
|
167
|
Entire activities are been executed through 28 Project Implementation Units (PIU) spread over whole country. Through the PPP route RVNL has already established 6 SPVs and is in the process of creating another SPV for rail connectivity to Rewas Port. RVNL is also equity partner of 10% in an SPV with 12 major ports under Ministry of Shipping to undertake rail related projects and activities in these ports (India Port Rail Company Ltd).
High Speed Rail Corporation of India Ltd (HSRC), a fully owned subsidiary of RVNL, was incorporated in July 2012. This has been entrusted with conducting the feasibility studies for HSR corridors of Diamond Quadrilateral, its diagonals and Delhi-Amritsar route.
RVNL is a proud Mini-Ratna CPSE under the Ministry of Railways, Government of India.
