BHEL surges on bullet train rolling stock order

BHEL (Bharat Heavy Electricals Ltd) and Japan’s Kawasaki will be collaborating to create rolling stock for first of its kind bullet train in India. The Prime Ministers of India and Japan addressed the media as they laid the foundation stone of the project.

The company has gained one of the largest orders in the current fiscal, further aiding strong order book. The first bullet train project between Ahmedabad and Mumbai will cost ~Rs 1 trillion. The 534 km distance is expected to get reduced to 2 hours as against 8 hours earlier.

The project is expected to be completed by 2023, which will be funded by Japanese Investment Cooperation Agency (80%) and the rest by the Indian Railways worth Rs 9,800 crore

The stock of BHEL has surged as much as 10 per cent, hitting the day's high mark of Rs 145.8 after the news broke out.However, It closed in today's t'trading session at Rs.137.4 mark up by 3.66 per cent