Rail Vikas Nigam Limited (RVNL) has emerged as the lowest bidder for an electrification infrastructure project awarded by North Eastern Railway, according to an exchange filing. The contract covers upgrade work on the Varanasi-Prayagraj section under the Varanasi Division and is intended to enhance the capacity of electric traction power supply installations across the corridor. The award represents a significant order for the construction arm of Indian Railways.

The scope of work includes design, supply, erection, testing and commissioning of traction substations along with associated switching posts for a two by 25 kV auto-transformer traction feeding system. The project requires installation of multiple substations and switching arrangements to support higher load demands and improve reliability of traction power. The technical package is focused on strengthening the electrical feeding architecture to accommodate current and anticipated traffic growth on the section.

The total contract value is Rs 1,294.6 million (Rs 1,294.6 mn) inclusive of applicable taxes and the project is scheduled for completion within 730 days of award. The filing stated that the contract was awarded by a domestic entity and does not involve any related-party transactions. RVNL characterised the work as falling within the normal course of business and indicated that the execution will be managed through its established project management and site execution teams.

RVNL is a Central Public Sector Undertaking under the Ministry of Railways, incorporated in 2003, and acts as the construction arm of Indian Railways. The company has been involved in a range of rail infrastructure projects including electrification, bridges and new lines. Market observers noted that the company's share price was down zero point seven two per cent on the reported date, had declined by eight point ninety nine per cent in the past month and was down 25.43 per cent in the past year.