Railway Stocks Surge: Railway PSU stocks such as Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam Ltd (RVNL), and RailTel Corporation of India are likely to attract attention on Monday, April 7. The reason for this renewed interest is the recent approval by the Union Cabinet of four major railway multi-tracking projects, worth ₹18,658 crore. These projects are expected to improve railway infrastructure across states like Maharashtra, Odisha, and Chhattisgarh.
The government’s aim is to expand and strengthen the railway network by adding around 1,247 kilometers of new and upgraded tracks. This expansion will help in reducing transportation costs and improving connectivity in remote and industrial areas.
One of the largest projects involves the construction of a new 615 km railway line in Chhattisgarh with an investment of ₹8,741 crore. This new line is expected to cut logistical costs by ₹2,520 crore when compared to road transportation. The Kharsia–Naya Raipur–Parmalkasa route will directly connect industrial zones like Baloda Bazar, helping new industries like cement plants grow in that region.
Another project in Maharashtra includes doubling the Gondia-Balharshah railway line at a cost of ₹4,819 crore. In Odisha, a third and fourth railway line will be constructed between Sambalpur and Jarapada at an estimated cost of ₹3,917 crore. Additionally, the Jharsuguda–Sason section in Odisha will see the development of third and fourth tracks under this plan.
These projects will not only enhance the railway network but also generate employment.
Around 379 lakh human workdays are expected to be generated during the construction phase. In addition to this, 19 new railway stations will be built. These stations will improve connectivity for nearly 3,350 villages and benefit the lives of about 47.25 lakh people.
This project will also support the movement of goods. It is likely to raise the freight capacity by 88.77 million tonnes each year. This improvement will help the country cut down on oil imports by nearly 95 crore litres. It will save fuel costs and support a cleaner, eco-friendly future.
On Friday, railway PSU stocks witnessed a dip. IRFC’s stock closed at ₹125.69, down by 2.69%. RVNL ended the day at ₹351.15 with a 2.39% fall. RailTel shares dropped 4.41% to ₹298, while Container Corporation of India shares also saw a decline of 3.43%, closing at ₹690.
With the government backing large-scale railway upgrades, investors are now watching these stocks closely. Market experts believe these infrastructure developments may lead to a positive impact on the long-term performance of railway PSU stocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions.
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