Rail Vikas Nigam (RVNL) has been declared the lowest bidder for a $21.6 million traction substation contract awarded by the West Central Railway.

The project covers the design, modification, supply, erection, testing, and commissioning of a 220/132kV/2×25kV Scott-connected traction substation, switching posts, Auto-Transformer installations, and Supervisory Control and Data Acquisition (SCADA) systems in the Bina–RTA section of the Bhopal Division. The execution period is set at 540 days.

In a regulatory filing, RVNL stated that the order was secured in the ordinary course of business and does not constitute a related-party transaction. The company also clarified that neither its promoters nor entities within the promoter group hold any interest in the awarding authority.

The project aims to enhance the division’s capacity and support a freight loading target of 3,000 metric tonnes.

RVNL, a government-owned enterprise under the Ministry of Railways, undertakes projects including new railway lines, doubling, gauge conversion, electrification, metro works, workshops, and major bridges.

For the June quarter, the company reported a 39.92 per cent decline in consolidated net profit to $16.2 million, compared with $27.0 million a year earlier. Revenue from operations fell 4.05 per cent year-on-year to $471.8 million.

On Thursday, shares of RVNL closed 0.64 per cent higher at Rs 335.55 on the BSE.