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Key Points

Rail Vikas Nigam Limited has secured a significant Rs 143.3 crore contract from South Central Railway to modernize its electric traction system. The project involves upgrading the existing traction infrastructure in the Salem division to improve freight loading capabilities. This contract represents another strategic milestone for RVNL in its ongoing infrastructure development initiatives. The company remains confident in its financial guidance despite current market conditions.

Key Points: RVNL Bags Rs 143.3 Crore Southern Railway Traction Upgrade

  • RVNL wins Rs 143.3 crore contract for railway traction system upgrade
  • Project involves converting 1x25 kV to advanced 2x25 kV system
  • Upgrade aims to enhance Southern Railway's freight loading capacity
  • Contract covers Salem and Coimbatore railway sections
2 min read

RVNL bags Rs 143.3 crore order from South Central Railway to upgrade electric traction system

Rail Vikas Nigam Limited secures major contract to modernize electric traction system in Salem division, enhancing railway infrastructure capabilities.

"The project will be executed over a period of 24 months - RVNL Stock Exchange Filing"

New Delhi, July 5

Rail Vikas Nigam Limited (RVNL), a public sector undertaking under the Ministry of Railways, on Saturday announced that it has signed a letter of agreement (LoA) for a new contract worth Rs 143.3 crore with South Central Railway.

The project involves the upgrade of the electric traction system in the Salem division of Southern Railway.

"It is hereby informed that Rail Vikas Nigam Limited has received LOA from Southern Railway for Upgradation work of Electric traction system," the company said in its stock exchange filing.

Specifically, the scope of work includes converting the existing 1x25 kV traction system to a more advanced 2x25 kV system on the Salem Junction - Podanur Junction and Irugur - Coimbatore Junction - Podanur Junction sections.

According to the filing, the upgrade will help Southern Railway enhance its capacity and meet the target of 3,000 metric tonnes of freight loading.

"The project will be executed over a period of 24 months and includes applicable taxes within the Rs 143.3 crore cost," it added in its filing.

This comes close on the heels of RVNL emerging as the lowest bidder for another railway project worth Rs 213.22 crore from South Central Railway, as reported on June 30.

Despite a relatively subdued performance in FY25 so far, the company has reaffirmed its revenue guidance of Rs 20,000-Rs 22,000 crore for the current financial year.

RVNL's shares ended flat at Rs 391.2 apiece on the National Stock Exchange (NSE) on Friday.

The company continues to maintain strong momentum with its diversified project portfolio, including construction of new railway lines, doubling of tracks, electrification, metro projects, major and cable-stayed bridges, and institutional infrastructure.

Meanwhile, in a strategic push toward clean energy and sustainability, RVNL is also exploring partnerships in the nuclear energy space.

In June, media reports stated that the company is in discussions with Russia's state-owned atomic energy company Rosatom to build Small Modular Reactors (SMRs) for its ongoing mega infrastructure projects, such as the Rishikesh-Karnaprayag railway line.

- IANS

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Reader Comments

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Priya S
As someone from Coimbatore, I'm really happy about this upgrade. Our section desperately needs better infrastructure. But will this actually translate to fewer delays and better maintenance? That's what matters most to passengers.
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Sarah B
Interesting to see RVNL diversifying into nuclear energy too. But shouldn't they focus on completing existing railway projects first? The Rishikesh-Karnaprayag line has been pending for years now.
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Arjun K
Rs 143 crore seems reasonable for such an important upgrade. The freight capacity increase will boost local industries in Tamil Nadu. Hope they maintain quality standards during execution.
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Karthik V
Good move but execution is key! We've seen many railway projects get delayed due to land acquisition and contractor issues. Hope RVNL has learned from past experiences. The 24-month timeline seems ambitious.
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Nisha Z
As a frequent traveler on this route, I'm cautiously optimistic. The current system causes so many power fluctuations. Hope this upgrade means no more sudden AC failures in summer! 🤞

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