RVNL Secures Rs 1.43 Billion Contract to Upgrade Salem Division Traction

08 Jul 2025 CW Team

Rail Vikas Nigam Ltd. (RVNL) has signed a letter of agreement (LoA) for a Rs 1.43 Billion contract with South Central Railway to upgrade the electric traction system in the Salem division of Southern Railway, according to a stock exchange filing dated 5 July.

The project involves upgrading the electric traction system from a 1x25 kV to a 2x25 kV system along the routes Salem Junction–Podanur Junction and Irugur–Coimbatore Junction–Podanur Junction. This enhancement will enable Southern Railway to meet its 3,000 metric tonne loading target.

The contract value of Rs 1.43 Billion includes taxes and is scheduled for completion within 24 months.

Earlier, on 30 June, RVNL emerged as the lowest bidder for a Rs 2.22 billion order from South Central Railway. Despite a subdued performance in FY25, the state-run firm reaffirmed its revenue guidance for the ongoing fiscal at Rs 200 to Rs 220 billion.

“We expect to achieve the FY26 revenue guidance as several large projects secured through bidding are now underway,” MP Singh, Director of Operations at RVNL, told CNBC-TV18 in May.

RVNL’s shares closed flat at Rs 391.2 on Friday, 4 July, at the NSE.

Infrastructure Urban

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