Shares of state-run railway companies surged sharply on Tuesday after the Union Cabinet approved four new rail infrastructure projects valued at a combined ₹24,634 crore. The approval, announced by Railways Minister Ashwini Vaishnaw, immediately boosted investor sentiment by providing a clear and substantial pipeline of work for companies involved in rail construction and technology.

The newly sanctioned projects focus on building crucial third and fourth lines across high-traffic corridors, aimed at decongesting the network and enhancing national freight and passenger capacity.

The breakdown of the projects is as follows:

  • Bhusaval – Wardha – Third and fourth line – ₹9,197 crore
  • Vadodara – Ratlam – Third and fourth line – ₹8,885 crore
  • Itarsi – Bhopal – Bina – Fourth line – ₹4,329 crore
  • Gondia – Dongargarh – Fourth line – ₹2,223 crore

Ircon International Ltd. led the rally, surging 7% to an intraday high of ₹184.64. Rail Vikas Nigam Ltd. surged up to 3%, reaching an intraday high of ₹356.15. RailTel Corporation of India Ltd. surged over 3.5% to ₹399.50.

The government approval underscores a continued focus on large-scale infrastructure spending, providing a positive outlook and increased earnings visibility for the railway sector’s public sector undertakings.

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