What Recent Contract Did RVNL Secure for Rs 143.3 Crore with South Central Railway?
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Synopsis
Rail Vikas Nigam Limited (RVNL) has made headlines by securing a significant contract with South Central Railway worth Rs 143.3 crore. This project focuses on upgrading the electric traction system, a crucial step towards enhancing railway infrastructure and capacity. Read on to discover the project's implications and RVNL's broader ambitions in sustainability and clean energy.
Key Takeaways
- RVNL secured a Rs 143.3 crore contract.
- The project focuses on upgrading the electric traction system.
- The upgrade aims to enhance capacity for Southern Railway.
- Completion expected in 24 months.
- RVNL is exploring clean energy partnerships.
New Delhi, July 5 (NationPress) Rail Vikas Nigam Limited (RVNL), a public sector enterprise under the Ministry of Railways, announced on Saturday that it has entered into a letter of agreement (LoA) for a new project valued at Rs 143.3 crore with South Central Railway.
The initiative aims to enhance the electric traction system in the Salem division of Southern Railway.
“We are pleased to inform that Rail Vikas Nigam Limited has secured LOA from Southern Railway for the Upgradation of the Electric traction system,” the company disclosed in its stock exchange announcement.
Notably, the project entails the transition from the current 1x25 kV traction system to an upgraded 2x25 kV system along the Salem Junction – Podanur Junction and Irugur – Coimbatore Junction – Podanur Junction routes.
The upgrade is projected to enable Southern Railway to boost its capacity, achieving a freight loading target of 3,000 metric tonnes.
“The project is slated for completion within 24 months and encompasses applicable taxes within the Rs 143.3 crore budget,” the filing added.
This announcement follows RVNL being the lowest bidder for another railway initiative valued at Rs 213.22 crore from South Central Railway, reported on June 30.
Despite a somewhat lackluster performance in FY25 thus far, the company remains steadfast in its revenue forecast of Rs 20,000–Rs 22,000 crore for the current financial year.
RVNL’s shares closed at Rs 391.2 each on the National Stock Exchange (NSE) on Friday.
The company continues to exhibit robust growth with its diversified portfolio, which includes the construction of new railway lines, track doubling, electrification, metro ventures, major cable-stayed bridges, and infrastructural projects.
In addition, RVNL is taking significant steps toward clean energy and sustainability by exploring collaborations in the nuclear energy sector.
In June, reports indicated that the company is in talks with Russia’s state-owned atomic energy company Rosatom to develop Small Modular Reactors (SMRs) for its ongoing large-scale infrastructure projects, including the Rishikesh-Karnaprayag railway line.
Point of View
It is essential to recognize the strategic importance of infrastructure projects like these for national growth. RVNL's commitment to enhancing railway capabilities while exploring clean energy partnerships signals a forward-thinking approach that aligns with the nation's sustainability goals. This project not only boosts the transportation sector but also contributes to the broader economic landscape.
NationPress
17/07/2025
Frequently Asked Questions
What is the value of the contract RVNL secured?
The contract secured by RVNL is worth Rs 143.3 crore.
What is the objective of the project?
The project aims to upgrade the electric traction system in the Salem division of Southern Railway.
How long is the duration of the project?
The project is expected to be completed within 24 months.
What will the upgrade achieve for Southern Railway?
The upgrade will enhance capacity and help meet a freight loading target of 3,000 metric tonnes.
Is RVNL involved in any other significant projects?
Yes, RVNL has also been the lowest bidder for another railway project worth Rs 213.22 crore.
