Mumbai: Rail Vikas Nigam Limited (RVNL), a Navratna public sector undertaking under the Ministry of Railways, has received a Letter of Acceptance (LOA) worth ₹404.88 crore from East Coast Railway for the execution of works related to a third railway line on the Nergundi-Barang and Khurda Road-Vizianagaram sections.
The LOA was issued on September 18, 2026, while RVNL disclosed the order on Saturday, September 19. The contract value of ₹404.88 crore is inclusive of Goods and Services Tax (GST).
The project covers a total stretch of 385 km on the Bhadrak-Vizianagaram section and includes a wide range of civil, track, signalling, telecommunications and electrification works.
RVNL Gets ₹404.88 Crore Railway Infrastructure Contract
The contract has been awarded by East Coast Railway for works associated with the development of the third railway line.
The overall project scope covers:
- 22 km between Nergundi and Barang.
- 363 km between Khurda Road and Vizianagaram.
- A total project stretch of 385 km across the Bhadrak-Vizianagaram section.
- Construction and allied railway infrastructure works required for the third-line development.
The project is expected to strengthen railway infrastructure along the route and support the development of additional rail capacity.
Major Civil and Track Works Included
Under the contract, RVNL will undertake several civil and railway track-related activities.
The scope includes:
- Roadbed construction.
- Minor bridges.
- Major bridges.
- Road Under Bridges (RUBs).
- Limited Height Subways (LHS).
- Building-related works.
- Ballast supply.
- Permanent way linking.
- Other allied railway works.
These works form an important part of the infrastructure required for commissioning and operationalising the additional railway line.
Signalling, Telecom and Electrification Works
Apart from civil and track works, the project also includes signalling, telecommunications and electrification-related activities.
RVNL will undertake signalling and telecommunication works, along with electrification and general service works.
The scope also covers:
- General service works.
- Power supply arrangements.
- Utility shifting.
- Signalling and telecommunication works.
- Electrification works.
- Shifting and modification of high-tension (HT) lines.
- Shifting and modification of low-tension (LT) lines.
These works will particularly include the section between Khurda Road and Gangadharpur.
Project to Be Completed Within 912 Days
RVNL is required to execute the project within a period of 912 days.
The company said the order was awarded by a domestic entity and falls within the normal course of its business.
RVNL also stated that the contract will be governed by the applicable General Contract Conditions.
Key contract details
- Company: Rail Vikas Nigam Limited (RVNL)
- Client: East Coast Railway
- Order value: ₹404.88 crore, including GST
- LOA date: September 18, 2026
- Project section: Bhadrak-Vizianagaram
- Total stretch covered: 385 km
- Execution period: 912 days
- Nature of work: Railway infrastructure, civil, track, signalling, telecom and electrification works
No Related Party Transaction
RVNL clarified that its promoter, promoter group and group companies have no interest in East Coast Railway.
The company also confirmed that the contract does not fall under the category of related party transactions.
According to RVNL, the order has been received in the normal course of its business and is not subject to any special relationship with the awarding entity.
Project to Strengthen Railway Infrastructure
The third-line works across the Bhadrak-Vizianagaram section are part of railway infrastructure development aimed at expanding rail capacity.
The project involves multiple components, ranging from bridges and roadbed construction to track linking, signalling, telecommunications and railway electrification.
The combination of these works is expected to support the development of the additional railway line across the identified sections.
About Rail Vikas Nigam Limited
Rail Vikas Nigam Limited (RVNL) is a Navratna public sector undertaking under the Ministry of Railways. The company undertakes execution of railway infrastructure projects, including new railway lines, doubling, electrification, major bridges, workshops and other rail-related infrastructure. RVNL works on projects across different stages, from planning and development to construction and project execution.
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