Govt Plans Merger of RVNL and Ircon to Create Large Rail Infra PSU

The Government of India is planning to merge Rail Vikas Nigam Limited and Ircon International Limited to form a larger public sector entity capable of executing large-scale infrastructure projects in India and overseas.

According to officials, the move aims to reduce competition between the two railway PSUs, streamline operations, and pool technical and financial resources to enhance project execution capabilities. The proposed merger is also expected to strengthen the combined entity’s ability to bid for complex and high-value infrastructure contracts.

The process has been initiated by the railways and will require approvals from multiple departments as well as the Union Cabinet. Detailed modalities of the merger are expected to be finalised in the coming months.

Once completed, the merged entity is likely to have a combined order book exceeding Rs 1.5 lakh crore, significantly enhancing its position in the infrastructure sector.