RVNL Secures ₹143.87 Crore Southern Railway Contract for Traction System Upgrade
By Shishta Dutta | Updated at: Oct 13, 2025 12:11 PM IST
New Delhi, July 5, 2025: Rail Vikas Nigam Limited (NSE: RVNL | BSE: 542649) has announced the receipt of a Letter of Acceptance (LOA) from Southern Railway for a major electrification infrastructure project, marking another operational milestone in the company’s core railway development portfolio.
Project Overview
The contract involves the upgrade of the electric traction system from 1×25 kV to 2×25 kV over key stretches of Southern Railway, specifically the:
- Salem Jn. (SA) – Podanur Jn. (PTJ)
- Irugur (IGU) – Coimbatore Jn. (CBE) – Podanur Jn. (PTJ)
This enhancement is targeted at supporting a 3000 MT loading capacity and is critical to augmenting the power infrastructure of the Salem division.
Key Contract Details
| Particulars | Details |
|---|---|
| Awarding Entity | Southern Railway |
| Tender Number | CONV-OHE-2X25-KV-SR01 |
| Nature of Work | Electrification system upgrade to 2×25 kV |
| Contract Value | ₹143,87,27,190.90 (incl. taxes) |
| Timeframe for Execution | 24 months |
| Order Type | Domestic |
| Significant Terms | As per General Contract Conditions |
| Promoter/Group Involvement | None |
| Related Party Transactions | No |
The contract does not involve any promoter group interest and does not constitute a related party transaction, ensuring full compliance with regulatory requirements under SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.
Strategic Relevance
This award is part of RVNL’s broader effort to modernize Indian Railways’ electrification infrastructure, aligning with the Ministry of Railways’ targets to meet rising freight demand and boost energy efficiency. The 2×25 kV system provides better voltage regulation and capacity compared to the conventional 1×25 kV system, making it ideal for high-density corridors.
About the Company
Rail Vikas Nigam Limited (RVNL) is a government-owned PSU under the Ministry of Railways, engaged in project development and execution of rail infrastructure. Listed on both NSE and BSE, RVNL plays a pivotal role in expanding India’s railway network through electrification, track doubling, and signaling upgrades.
REF: https://nsearchives.nseindia.com/corporate/RVNL_05072025124241_Coveringletter04072025.pdf
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