RVNL Wins Rs 1.43 Billion Rail Electrification Contract

10 Jul 2025 CW Team

Rail Vikas Nigam Ltd (RVNL) has announced the receipt of a letter of agreement (LoA) for a contract worth Rs 1.43 billion from South Central Railway. The project involves upgrading the electric traction system in the Salem division of Southern Railway.

Specifically, the upgrade will convert the existing 25 kV traction system to a 2×25 kV system across key sections: Salem Junction–Podanur Junction and Irugur–Coimbatore Junction–Podanur Junction. According to RVNL’s stock exchange filing, this enhancement will help Southern Railway meet its 3,000 million tonnes loading target.

The contract, inclusive of taxes, is valued at Rs 1.43 billion and must be completed within 24 months.

In a separate announcement dated 30 June, RVNL stated it had emerged as the lowest bidder for another order worth Rs 2.13 billion from South Central Railway.

Despite challenges during the financial year 2025, the public sector enterprise reaffirmed its revenue guidance for FY26, expecting to generate between Rs 200 billion and Rs 220 billion, largely due to the execution of large contracts secured through competitive bidding.

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