RVNL Secures
Rail Vikas Nigam Limited has secured a ₹156.35 crore EPC contract from South Western Railway for the design, supply, erection, testing, and commissioning of a 2×25 kV overhead equipment and power supply system.
Rail Vikas Nigam Limited (RVNL), a prominent public sector enterprise under the Ministry of Railways, has been awarded a significant Engineering, Procurement, and Construction (EPC) contract by South Western Railway. The project, valued at ₹156.36 crore, focuses on the electrification of the railway section between Rayadurga and Topavagada in the TK-RDG segment.
Scope of the Project
The comprehensive scope of this project encompasses several critical components aimed at enhancing the railway infrastructure:
- Overhead Electrification (OHE) and Power Supply Installation (PSI): Design, supply, erection, testing, and commissioning of a 2×25 KV OHE and PSI system.
- Traction Substations (TSS), Sectioning Posts (SP), and Subsectioning Posts (SSP): Installation of these facilities to ensure efficient power distribution and management along the route.
- Electrical General Services, Engineering, and Telecommunication Works: Implementation of supporting services and systems to bolster the operational capabilities of the railway network.
The project spans approximately 99.463 Route Kilometers (RKM) or 114.145 Track Kilometers (TKM) and is slated for completion within an 18-month timeframe.
Strategic Importance
This electrification initiative is poised to significantly enhance the efficiency and sustainability of rail operations in the region. By transitioning from diesel to electric traction, the project aims to reduce greenhouse gas emissions, lower fuel costs, and improve the overall speed and reliability of train services. Moreover, the upgraded infrastructure is expected to facilitate increased freight and passenger capacity, thereby contributing to regional economic growth.
Financial and Market Implications
Following the announcement of this contract, RVNL’s stock experienced notable activity in the market. On February 24, 2025, the company’s share price opened at ₹367.45 on the Bombay Stock Exchange (BSE), slightly below the previous closing price of ₹371.60. Despite broader market pressures, RVNL’s stock has demonstrated resilience, appreciating nearly 10% over the past five trading sessions, attributed to a series of recent order wins.
RVNL’s Track Record
RVNL has established itself as a key player in the development and implementation of rail infrastructure projects across India. The company’s portfolio includes a diverse array of projects, such as the construction of new railway lines, gauge conversions, doubling of existing lines, and electrification initiatives. This latest contract from South Western Railway further solidifies RVNL’s reputation as a reliable and efficient executor of large-scale railway projects.
The awarding of the ₹156.36 crore EPC contract to RVNL by South Western Railway marks a significant advancement in India’s railway electrification efforts. The successful execution of this project is anticipated to yield substantial operational and environmental benefits, aligning with the nation’s broader objectives of sustainable infrastructure development and economic.
Group Media Publication
Construction, Infrastructure and Mining
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