Did RVNL Secure a Rs 201 Crore Contract from East Coast Railway for Wagon Overhaul Workshop?
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Synopsis
Rail Vikas Nigam Limited is on a winning streak, having claimed a significant Rs 201 crore contract from East Coast Railway to establish a wagon overhaul workshop. This project not only enhances RVNL's portfolio but also plays a crucial role in supporting Indian Railways' freight targets. Discover the details behind this major win.
Key Takeaways
- RVNL wins Rs 201 crore contract for wagon overhaul workshop.
- Project capacity: 200 wagons.
- Completion timeline: 18 months.
- RVNL is the sole bidder.
- Also secured a traction power project from Southern Railway.
New Delhi, Dec 29 (NationPress) Rail Vikas Nigam Limited (RVNL), a government-owned entity, announced on Monday that it has secured the position of the lowest bidder for a significant project from East Coast Railway.
This initiative involves constructing a wagon periodical overhaul workshop at Kantabanji, designed to accommodate 200 wagons.
As the awarding authority, East Coast Railway designated the total project cost, excluding goods and services tax, at Rs 201.23 crore.
RVNL was the only bidder for this project, with an execution timeline of 18 months.
“We hereby declare that Rail Vikas Nigam Limited has been recognized as the Lowest Bidder (L1) by East Coast Railway for the ‘Establishment of Wagon POH Workshop with a Capacity of 200 Wagons at Kantabanji,’” the company stated in its exchange filing.
“The project cost, excluding GST, stands at Rs 201,23,47,556.55 and has been awarded to Rail Vikas Nigam Limited as the sole bidder,” it further added.
Earlier this month, RVNL also secured another substantial contract from Southern Railway. In a recent stock exchange filing, the company revealed it received a letter of acceptance for a traction power project valued at Rs 145.35 crore.
This project entails the design, supply, erection, testing, and commissioning of Scott-connected traction substations, power quality apparatus, switching posts, a 2x25 kV feeding system, and systems for SCADA and automatic fault location.
The work is set to take place in the Jolarpettai–Salem section of the Salem division.
RVNL indicated that this traction power initiative aligns with the Indian Railways’ Mission 3000 MT freight-loading goal.
The project is expected to be completed within a span of 540 days and is part of the company's regular business operations.
Additionally, the company clarified that the order was given by a domestic entity, with no promoter-group interest in Southern Railway, thereby categorizing it as a non-related-party transaction.
However, shares of Rail Vikas Nigam Limited saw a decline on Monday, closing at Rs 366.90 on the Bombay Stock Exchange, which is a drop of Rs 21.05, or 5.43 percent.
Point of View
I observe that Rail Vikas Nigam Limited's recent contract wins highlight a robust commitment to enhancing India's railway capabilities. This strategic move is not only beneficial for RVNL but also underscores the government’s efforts to bolster infrastructure in the nation, aligning with broader economic goals.
NationPress
01/01/2026
Frequently Asked Questions
What is the value of the contract won by RVNL?
The contract secured by Rail Vikas Nigam Limited from East Coast Railway is valued at Rs 201.23 crore.
What is the duration for completing the wagon workshop project?
The project for the wagon overhaul workshop is scheduled to be completed within 18 months.
How many wagons can the new workshop handle?
The new wagon overhaul workshop at Kantabanji will have the capacity to handle 200 wagons.
Has RVNL received any other contracts recently?
Yes, RVNL recently received another order from Southern Railway for a traction power project worth Rs 145.35 crore.
What is the significance of the traction power project?
The traction power project is a significant part of Indian Railways' Mission 3000 MT freight-loading target, aiming to enhance operational efficiency.
