Rail Vikas Nigam Ltd (RVNL) has signed a letter of agreement (LoA) for a ₹143.3 crore contract with South Central Railway. The agreement covers the enhancement of the electric traction system in the Salem division of Southern Railway, as detailed in a stock exchange filing on July 5. The project will upgrade the existing traction system from 1×25 kV to a 2×25 kV system along the Salem Junction to Podanur Junction and Irugur to Coimbatore Junction to Podanur Junction routes.
This improvement is expected to help Southern Railway achieve its 3,000 MT loading target. The total project cost, inclusive of taxes, is ₹143.3 crore, and the completion deadline is set at 24 months. Earlier, on June 30, RVNL was selected as the lowest bidder for another contract worth ₹213.22 crore with South Central Railway.
In May, the state-owned company confirmed its revenue forecast of ₹20,000 to ₹22,000 crore for the current financial year, despite a sluggish performance in FY25. Rail Vikas Nigam Ltd (RVNL) is a public sector enterprise under the Ministry of Railways, India, established to undertake infrastructure development projects to enhance the country’s railway network. Specializing in the planning, execution, and management of rail-related projects, RVNL handles tasks such as track doubling, gauge conversion, electrification, and construction of new railway lines, bridges, and other critical infrastructure.
The company often collaborates with joint ventures and private partners to deliver large-scale projects efficiently. With a focus on modernizing India’s railway infrastructure, RVNL plays a vital role in supporting the government’s vision of expanding and upgrading rail connectivity to meet the growing demands of passengers and freight transport.
