Rail Vikas Nigam Ltd (RVNL) has received a Letter of Acceptance from Southern Railway for a traction power project valued at Rs 1.45 billion, the company said in a stock exchange filing on Wednesday.

The contract involves the design, supply, erection, testing and commissioning of Scott-connected traction substations, power-quality equipment, switching posts, a 2×25 kV feeding system, and SCADA and automatic fault locator systems in the Jolarpettai–Salem section of the Salem Division. The project forms part of Indian Railways’ Mission 3000 MT freight-loading initiative.

RVNL said the work is to be completed within 540 days and falls under the company’s ordinary course of business. The order was awarded by a domestic entity, and the firm confirmed that no promoter-group interest exists in Southern Railway, nor does the award qualify as a related-party transaction.

The LOA was issued under tender EPC-PSI-2X25kV-SR-05.