Pamban Vertical Bridge will be dedicated to the nation by March 2022: Rajesh Prasad, RVNL

Rajesh Prasad, Director (Operations), Rail Vikas Nigam Limited (RVNL), talks about Q4FY21 numbers, future outlook, current and expected order book, Pamban Vertical Bridge and Char Dham Railway Projects among others during an exclusive interview with Swati Khandelwal, Zee Business. Edited Excerpts: 

Q: Tell about the kind of margins that were seen in the gone quarter (Q4FY21)? Going forward, what is an outlook and do you expect that you will perform better than Q4FY21?

A: As you said that our performance was quite strong in Q4FY21 and also gave a figure of 32%, yes you are right that in the pre-COVID year in Q4FY20, the turnover stood at Rs 4,221 crore which increased to Rs 5,577 crore in Q4FY21. EBITDA margin also improved from Rs 264 crore to Rs 426 crore. If we look at an overall number then for the first time, RNVL’s turnover went over Rs 15,000 crore in FY21. For the first time, our profit before tax (PBT) passed the Rs 1000 mark. Two years ago, our turnover crossed the Rs 10,000 crore mark.

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So, overall our performance in the Q4FY21 and the whole financial year (FY21) has been great for us, we achieved all the physical and financial targets although COVID has an impact on the world, the country, railways, infrastructure sectors and RVNL among others. So from that aspect, the performance of our company was great. You also asked about the expansion programme, project delivery has been our strength. RVNL is the first PSU in the country that has performed right from conceiving, conception, to design to implementation and commissioning of metro in the Kolkata Metro. Currently, we are making the first vertical bridge in Pamban Bridge. We have built a state-of-the-art building in railway institute of finance management, Secundrabad. Based on the same, we are building a National Rail & Transportation Institute in Vadodra. We have completed 10 turnkey projects. Ministry of Railways has transferred 183 projects to us.

Out of these 183 projects, 101 projects have been completed and commissioned and handed over to the Ministry of Railways. As far as expansion is concerned, we have created a separate vertical, which will be a bidding arm of Rail Vikas Nigam Limited (RVNL). Going forward, we are going to provide consultancy services in India and abroad. Currently, we are working on all kinds of infrastructure projects, metro projects. We have also created a business development cell and you can see its result in the coming time.

Q: What is the current order book and what are the projections for this year and in a short to long term period?

A: Currently, we have an order book of Rs 75,000 crore of which 54% is for a new line, 26% double line and 11% metro rail projects. We are working on eight special purpose vehicles (SPVs), either they are being created or is being revived. Twp SPVs are those, which were sanctioned in the past but couldn't take off for some reason and they are being revived. Now, we are entering two new sectors like consultancy services and metro execution, so, our future will be good. We also have credentials and created a team, so we are ready in every way to work in the market and increase our order book. I am asking you only a month to a maximum of 45 days, after which you can see the kind of order book additions in our company and how we are entering in the market.

Q: Provide some details on Pamban Vertical Bridge and Char Dham Project? The Char Dham project is going to be a very big project along with other players. So, let us know exactly the work that is happening on the front, how big is this project and what does it means for RVNL, if you win it?

A: I would like to talk about the Char Dham Project first. Its total length is about 281 kilometres and it connects Kedarnath, Badrinath, Gangotri and Yamunotri. The alignment of Gangotri and Yamunotri is around 120 kilometres and the alignment of Kedarnath and Badrinath is 160 kilometres. After completing its alignment, final location surveys, engineering details among others, we have submitted ts detailed project report to the Ministry of Railways in March 2021. Right now, there is a small issue related to the connectivity up to the temples, i.e. whether it will be through cable cars or rack & pinion railway system and we are supposed to work out on it. The total cost of the project will be around Rs 43,000 crores.

After acceptance of the final location survey and detailed engineering plans etc, the ministry will take a call in terms of how to implement the project, the pace at which it should be done and by whom it should be done. But RVNL has expertise in doing such works. In the hilly train, we are doing a big work in Rishikesh–Karnaprayag in which out of a length of 125 kilometres, 105 kilometres part of the bridge is a tunnel and the longest tunnel is 15 kilometres. Work is going on there on every front. So, we have got enough expertise for that particular thing of working in hilly trains. We hope that if this project is assigned to us, we will finish this work timely with good quality and safety standards. 

As far as the upcoming project of Pamban Bridge, it is a project worth around Rs 225 crore in which we are reconstructing. It will be a unique bridge in itself and will the first vertical bridge of the country. It has 99 spans of 18.3 meters, which is in approach. The vertical bridge will lift automatically for navigational purposes and this span is around 72 meters. The timeline for this particular bridge is to complete the work and commission it in the same financial year by March 2022. And, if there is not much impact of COVID, then by March 2022, the connectivity of this Pamban Bridge will be dedicated to the country by the RVNL

Q: As you have provided visibility related to the way you are expanding yourselves making SPVs, creating verticals and focusing on consultancy services. Going forward, how will we see the way your topline will improve and what will be a mix of domestic Vs international and are you looking forward to bidding for international projects as well or your hands are full with domestic projects for now? What is growth expected in your current order book of Rs 75,000 crore in a quarter or two?

A: The key strength of our company is expertise in undertaking all stages of railway infrastructures and we have implemented diversified projects. As far as foreign/ overseas projects, yes we are trying to get some assignments in the overseas countries also but it will take some time. But we in consultancy services, metro construction, as I said, RVNL is India’s first PSU that has done right from conception to commissioning work in the metro rail. No other PSU has such credentials of metro execution and commissioning.

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So, we have a big strength. The enhancement in the order book is concerned, it will come from metro projects and consultancy services and the eight special-purpose vehicles on which we are working – of which six are new and two are a proposal for revival – will also provide a good turnover but maybe it may not come in next two quarters and will take some time in it.