New Delhi: Two major railway PSUs – Rail Vikas Nigam (RVNL) and IRCON International – are set to merge in a move to create a single entity that can take up large domestic and international projects instead of competing with each other, top officials said on Tuesday.This is the second PSU merger after Finance Minister Nirmala Sitharaman announced the merger of PFC and REC in her budget on February 1. The official said details of the RVNL-IRCON merger will be worked out by railway officials in the coming days.People aware of the development said the Railways has started the process, which will eliminate duplication, pooling of resources and enhance the ability of the merged entity to bid for mega infrastructure projects. He said the process would be lengthy as it would require approval from various departments and then the Cabinet.According to BSE data, the market capitalization of RVNL on Tuesday stood at Rs 53,877 crore, while that of IRCON stood at Rs 11,159 crore. The combined order book of the two entities is likely to exceed Rs 1.5 lakh crore, officials said. Shares of IRCON closed 2.9% higher at Rs 119 on the BSE, while RVNL closed 3.3% higher at Rs 258.“After the merger, the new entity will become a bigger player and the share price will also increase. The need to merge the two has been felt for a long time. This will increase the pool of manpower and capacity. The merged entity can give competition to other major players in the infrastructure sector and it can handle larger order books,” an official said.