Hindustan Construction & Dilip Buildcon JV wins order worth Rs 1,335 crore

The joint venture of Hindustan Construction Company (HCC) and Dilip Buildcon Limited (DBL) has been awarded a contract worth Rs 1,335 crore by Rail Vikas Nigam Limited (RVNL).

The contract is for the construction of tunnels, bridges and formation works under package-9 of the new broad gauge rail line between Rishikesh and Karanprayag in Uttarakhand. HCC share in the JV is 60 per cent (approximately Rs 801 crore).

This is an item rate contract for constructing 8.04 km long rail line, including a 6.4 km long main tunnel and 6.3 km long escape tunnel, 2 major bridges and one minor bridge, 2.2 km long yard, and a station at Karnaprayag. The work is to be completed in 50 months.

RVNL's 125 km new broad gauge rail line between Rishikesh to Karnaprayag will boost tourism, trade, and connectivity for pilgrims. It comprises of 17 tunnels, 16 major railway bridges, and 12 new stations. The rail line will pass through many famous places connecting Devprayag, Srinagar, Rudraprayag, Gauchar, Karnaprayag, Dehradun, Tehri Garhwal, Pauri Garhwal, Rudraprayag, and Chamoli.

The stock of HCC closed at 6.34, up by 7.09 per cent or Rs 0.42 per share. The intraday high is Rs 6.47 and the intraday low is Rs 5.92. Since the beginning of the year, the stock has given a return of -36 per cent thereby underperforming S&P BSE SmallCap Index, which gave a return of 3.85 per cent.