Rail stocks gain after CCEA approves many rail projects

Shares of nine companies whose fortunes are linked to orders from Indian railways rose by 0.5% to 6.17% at 11:00 IST on BSE after the Cabinet Committee on Economic Affairs approved rail projects worth Rs 9598.32 crore.

The Cabinet Committee on Economic Affairs (CCEA) announced after market hours yesterday, 18 November 2015.

Meanwhile, the BSE Sensex was up 267.48 points, or 1.05% to 25,750.

Among rail stocks, Hind Rectifiers (up 3.73%), NELCO (up 2.2%), Kalindee Rail Nirman (up 6.17%), Titagarh Wagons (up 6.14%), Stone India (up 3.21%), Texmaco Rail & Engineering (up 5.61%), Kernex Microsystems (up 2.84%), BEML (up 2.01%) and Container Corporation of India (up 0.5%) gained.

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi yesterday, 18 November 2015, has given its approval for revised cost estimate amounting to Rs 2774 crore with railway share as Rs 1247 crore and Ministry of Road Transport and Highways share as Rs 1527 crore for construction of rail-cum-road bridge across river Ganga (14 kms) at Munger with a provision that the cost of land for road approaches may increase in future as the State Government of Bihar has not yet initiated acquisition proceedings for the same.

The CCEA also gave its approval for 3rd and 4th lines between Budhapank and Salegaon via Rajathgarh railway line of 85 km each with a cost of Rs 1172.92 crore. The project is likely to be completed in the next three years during 12th and 13th Plan period.

The CCEA also gave its approval for doubling of Kottavalasa-Koraput railway line of 189.278 km with a completion cost of Rs 2977.64 crore.

Additionally, the CCEA gave its approval for doubling of Koraput-Singapur Road section railway line of 164.56 km with a completion cost of Rs 2361.74 crore.

The CCEA also gave its approval for doubling of Jagdalpur-Koraput section railway line of 110.22 km with a completion cost of Rs 1839.02 crore.

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