Rail stocks gain after CCEA approves nine rail network expansion projects

Shares of nine companies whose fortunes are linked to orders from Indian Railways rose by 0.06% to 5.64% at 10:30 IST on BSE after Cabinet Committee on Economic Affairs approved nine rail projects worth Rs 24374.86 crore.

The announcement was made by Ministry of Railways after market hours yesterday, 24 August 2016.

Meanwhile, the BSE Sensex was up 74.09 points, or 0.26%, to 28,136.58.

Hind Rectifiers (up 4.09%), NELCO (up 0.06%), Kalindee Rail Nirman (up 3.23%), Titagarh Wagons (up 5.64%), Stone India (up 4.2%), Kernex Microsystems (up 3.29%), BEML (up 0.39%), Texmaco Rail & Engineering (up 3.29%), and Zicom Electronic Security Systems (up 0.24%) gained.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi in a major push to give a boost to the infrastructure sector in the country, approved nine projects worth Rs 24374.86 crore in nine states for expansion of railway network and connectivity across the country.

The nine projects include construction of second railway line between New Bongaigaon and Kamakhya in Assam; construction of third line between Kharagpur (Nimpura) and Adityapur in Jharkhand; construction of third line between Rajnandgaon-Nagpur (Kalumna) in Rajnandgaon district of Chhattisgarh and Gondia, Bhandara and Nagpur districts in Maharashtra; construction of third line between Mathura and Jhansi in Uttar Pradesh and construction of third line between Jhansi and Bina in Madhya Pradesh; construction of third line between Itarsi and Nagpur in Madhya Pradesh and Maharashtra; construction of third line between Ballarshah and Kazipet in Telangana and Maharashtra; construction of third line between Vijaywada and Gudur in Andhra Pradesh; and construction of fourth line between Jharsuguda and Bilaspur in Odisha and Chhattisgarh.

Besides facilitating the travel by easing the traffic bottlenecks, the approved lines would help the upcoming industries in the region and additional transport capacity to meet their requirements. The goods trains supplying foodgrains from one region to another, various industries, mines, coal fields and power plants will have additional transport capacity through these lines resulting in more revenues to Indian Railways, the statement from Ministry of Railways added.

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