Rail Stocks Up; Govt OKs New Rail Lines Worth ₹24,657 Crore

12 Aug 2024 , 11:40 AM

Shares of Railway companies rose after the government approved eight new rail lines. The Cabinet Committee on Economic Affairs approved eight new rail line projects at an estimated cost of ₹24,657 crore on Friday.

The eight projects in Seven States – Odisha, Maharashtra, Andhra Pradesh, Jharkhand, Bihar, Telangana and West Bengal – will increase the existing network of Indian Railways by 900 kms and will be completed by 2030-31.

The routes are essential for transportation of fertilizer, coal, iron ore, steel, cement, bauxite, limestone, and aluminium powder. The capacity augmentation works will result in additional freight traffic of 143 million tonnes per annum.

Shares of railway companies were up 3-9% on the news. Shares of Rail Vikas Nigam Limited, which is the construction arm of the Indian Railways rose the most.

Rail Vikas Nigam shares were up 9.2% at ₹566 rupees. Shares of Indian Railway Finance Corporation Limited, IRCON International Limited and RailTel Corp of India Limited rose 3-4%.