RVNL secures Rs 143 crore order from Southern Railway for traction system upgrade

The scope of work includes converting the existing 1x25 kV traction system to a more advanced 2x25 kV system on the Salem Junction–Podanur Junction and Coimbatore Junction–Podanur Junction–Irugur sections.

New Delhi: Rail Vikas Nigam Limited (RVNL), a public sector undertaking under the Ministry of Railways, on Saturday announced that it has signed a letter of agreement (LoA) for a new contract worth Rs 143.3 crore with South Central Railway.

The project involves the upgrade of the electric traction system in the Salem division of Southern Railway. It is hereby informed that Rail Vikas Nigam Limited has received (LoA) from Southern Railway for Upgradation work of Electric traction system, the company said in its stock exchange filing.

---

Specifically, the scope of work includes converting the existing 1×25 kV traction system to a more advanced 2×25 kV system on the Salem Junction “ Podanur Junction and Irugur , “ Coimbatore Junction “ Podanur Junction sections.

According to the filing, the upgrade will help Southern Railway enhance its capacity and meet the target of 3,000 metric tonnes of freight loading. The project will be executed over a period of 24 months and includes applicable taxes within the Rs 143.3 crore cost, it added in its filing.

This comes close on the heels of RVNL emerging as the lowest bidder for another railway project worth Rs 213.22 crore from South Central Railway, as reported on June 30.

Despite a relatively subdued performance in FY25 so far, the company has reaffirmed its revenue guidance of Rs 20,00-Rs 22,000 crore for the current financial year. RVNL’s shares ended flat at Rs 391.2 apiece on the National Stock Exchange (NSE) on Friday.

The company continues to maintain strong momentum with its diversified project portfolio, including construction of new railway lines, doubling of tracks, electrification, metro projects, major and cable-stayed bridges, and institutional infrastructure.

Meanwhile, in a strategic push toward clean energy and sustainability, RVNL is also exploring partnerships in the nuclear energy space. In June, media reports stated that the company is in discussions with Russia’s state-owned atomic energy company Rosatom to build Small Modular Reactors (SMRs) for its ongoing mega infrastructure projects, such as the Rishikesh-Karnaprayag railway line.