RVNL Secures Major Rs 213 Crore Rail Electrification Contract 🚂

Get ready for some electrifying news from the railway sector! ⚡ Rail Vikas Nigam Limited (RVNL), a key player in India’s infrastructure development, has just announced a significant contract win that’s set to power up a crucial part of the country’s rail network.

RVNL has received a Letter of Acceptance (LOA) from the South Central Railway for a substantial project. This isn’t just any contract; it’s a vital upgrade aimed at enhancing the efficiency and capacity of existing railway lines.

What’s the Project All About?

The core of this project involves the Design, Supply, Erection, Testing, and Commissioning for OHE (Overhead Equipment) upgradation. In simpler terms, RVNL will be upgrading the current 1X25kV system to a more advanced 2X25kV AT feeding system, which includes all the necessary feeder and earthing works. This means more robust and reliable power supply for trains!

This important work will be carried out across the Duvvada-Rajahmundry & Samalkot-Kakinada Port section of the Vijayawada Division, all under the South Central Railway. The scope is quite impressive, covering a total of 195.5 Route Kilometers (RKM) / 391 Track Kilometers (TKM).

The Financials and Timeline 💰

Now, for the numbers that matter! This domestic project comes with a hefty price tag of Rs 213,22,48,546.62/- (that’s over Rs 213 crore, including applicable taxes!). RVNL is expected to complete this extensive project within 24 months from the date of the LOA.

This contract is a clear indicator of RVNL’s continued role in modernizing India’s vast railway infrastructure. As a government enterprise, RVNL consistently undertakes and executes diverse railway projects, from laying new lines and electrification to building essential workshops and bridges. Such consistent order wins are a normal part of the company’s business operations and highlight its specialized expertise in the field.

For those following RVNL’s performance, the stock last traded at Rs 380.95, showing a slight dip of 1.0% before the market closed. This new contract, however, reinforces the company’s strong order book and its ongoing contribution to India’s ambitious infrastructure growth story.

Keep an eye on this space for more updates on key developments in the financial world!

source: Corporate Announcement

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