Rail Vikas Nigam Ltd (RVNL), a public sector enterprise, announced on December 3 that it has received a letter of acceptance (LoA) from East Central Railway for a significant infrastructure project. The contract involves the design, supply, erection, testing, and commissioning of traction substations along with associated switching posts to upgrade the electric traction system in the Gomoh-Patratu section of the Dhanbad division.
This project will modernize the current electric traction setup from a 1X25 kV system to a 2X25 kV AT feeding system. Valued at ₹186.77 crore, inclusive of taxes, the project has a completion timeline of 540 days and aims to improve railway efficiency and performance on key routes.
The development follows RVNL’s recent emergence as the lowest bidder for a ₹642.57-crore power infrastructure project with Punjab State Power Corporation Ltd, announced on November 29. Despite these contract wins, RVNL reported a 27% year-on-year decline in net profit for the September 2024 quarter, with earnings falling to ₹286.9 crore compared to ₹394.3 crore in the same period last year. Revenue from operations also dropped by 1.2% YoY to ₹4,855 crore, while EBITDA decreased by 9%, with margins narrowing to 5.6% from 6%, reflecting ongoing operational challenges.
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.
