The Indian Government has announced that it will sell a 15% stake in Rail Vikas Nigam Limited (RVNL) to raise nearly $103m (Rs7.5bn).

The issue is open for both non-retail investors and retail investors.

Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said on social media: “Offer for Sale in RVNL opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday. The government would divest 10% equity with a 5% Green Shoe option.”

The floor price of one share has been fixed at $0.38 (Rs27.50), reported Press Trust of India.

RVNL was established as a fully owned public sector undertaking (PSU) of the Indian Ministry of Railways in January 2003.

RVNL was incorporated for raising extra-budgetary resources and has also executed several projects on a fast-track basis in connection with the formation and capacity expansion of rail infrastructure.

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Last month, RVNL successfully conducted the trial run of an electric locomotive for the very first time in the northeastern state of Assam.

The new locomotive will support the Indian Railways to provide electric rail connectivity in the isolated northeastern parts of the country.

Full operations under electric traction are currently being implemented from the New Jalpaiguri (NJP) station in West Bengal.

In order to transform India into a green country, the Indian Ministry of Railways is working to renovate the whole railway network, with electrification being a priority.

As of November 2020, around 66% of the track length has been electrified.

Indian Railways is aiming to complete the electrification of its entire broad-gauge network by 2023, enabling trains to run without using imported fossil fuel.