In 2022, it was announced that Rail Vikas Nigam (RVNL), recognised as a Navratna and the construction arm of the Ministry of Railways, had been designated as the project implementation agency for the UTF (Uthuru Thila Falhu-Island) Harbour project in the Maldives. The order for this crucial project had been issued by the Union Ministry of External Affairs. The project, estimated to cost Rs 15.44 billion, was slated for completion within a span of 24 months.
As two years elapsed, and amid continued tension between Maldives and India, the project? among the initial bids secured by RVNL? was yielding profit margins of approximately 11 percent.
RVNL has since set its sights on expanding its presence abroad, particularly in West Asia, Africa, and neigh boring regions. Senior officials revealed intentions to explore partnerships with Botswana Railways and the Namibia Trans Kalahari project for further expansion, as reported. Reportedly, earnings and profit margins from bid-acquired projects surpass those obtained through nomination.
During a recent earnings call, company management disclosed, "The initial project within India, secured through bidding, was the Indore Metro project. Similarly, the first international project, undertaken through bidding, was in the Maldives... Profit margins from the Maldives project stood at 11 percent, compared to 10.66 percent for the Indore project. The combined turnover from these ventures amounted to Rs 9.86 billion, roughly 45 percent of the Rs 22.55 billion turnover from bidding projects. This marks a significant increase in turnover from bidding projects."
Senior officials indicated that the company has a success rate of 20 percent in bids placed to wins. RVNL has already submitted bids internationally, targeting neighboring nations such as Bangladesh, Nepal, and Sri Lanka, as well as countries in West Asia including the UAE, Oman, Uzbekistan, and Saudi Arabia, alongside Rwanda in Africa.
"We are actively seeking to expand our presence. Expressions of interest have been submitted to Botswana Railways and the Namibia Trans Kalahari project team," stated a high-ranking official. International offices have been established in South Africa, Oman, the UAE, and the Maldives.
RVNL aims to extend its presence beyond railway infrastructure and similar projects.
