RVNL Wins Rs 1.43B Electrification Contract in Southern Railway

17 Apr 2025 CW Team

Rail Vikas Nigam Ltd (RVNL) has emerged as the lowest bidder for a Southern Railway contract worth Rs. 1.43 bn to upgrade the electric traction system in Tamil Nadu. The project aims to support a 3,000 metric tonne loading capacity. The contract covers the Salem Junction–Podanur Junction and Irugur–Coimbatore Junction–Podanur Junction sections of the Salem division. The existing 1x25 kV traction system will be upgraded to a 2x25 kV system, enhancing load-bearing efficiency and improving operational performance.

RVNL will be required to complete the project within twenty-four months, as per the terms outlined in the exchange filing.

Following the announcement, RVNL’s shares rose by 1.8 per cent, closing at Rs. 343.7. Despite a four per cent gain over the past month, the stock remains down 20 per cent in 2025, and nearly 50 per cent below its all-time high of Rs. 647, reached in 2024.

The government currently holds a 72.84 per cent stake in the company, according to filings from the December 2024 quarter.

Source: BW Online Bureau

Image source:greaterkashmir

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