New Delhi: Rail Vikas Nigam Limited (RVNL), the public sector undertaking under the Ministry of Railways, has bagged a Letter of Award (LOA) from Southern Railway worth ₹143.37 crore for the upgradation of the electric traction system in the Salem Division. The project is to be executed over the next 24 months, the company said in a regulatory filing.
The order involves the upgradation of the 1×25 kV traction system to a 2×25 kV traction system along key routes, including:
- Salem Junction (SA) – Podanur Junction (PTJ)
- Irugur (IGU) – Coimbatore Junction (CBE) – Podanur Junction (PTJ)
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Enhancing Capacity for Higher Freight Loads
The traction upgrade aims to support enhanced freight operations, with the goal of meeting the 3,000 MT loading target across the upgraded sections. This capacity expansion is expected to significantly improve efficiency and throughput for freight trains running through the busy Southern Railway corridors.
“This upgradation will strengthen the region’s railway infrastructure and support the growing demand for freight transportation,” RVNL stated.
Part of RVNL’s Growing Order Book
The contract is part of RVNL’s regular business operations. With this latest addition, RVNL’s order book stands at approximately ₹97,000 crore, and the order inflow in FY25 so far has touched nearly ₹14,000 crore, reaffirming its strong execution pipeline in railway infrastructure development.
RVNL shares were in focus following the announcement, with investor sentiment buoyed by the company’s consistent order wins in FY25.
About RVNL
Established in 2005, RVNL has played a critical role in bridging the infrastructure gap in Indian Railways by delivering over 152 railway projects covering more than 16,500 km. Beyond railways, the organization has expanded its footprint across diverse infrastructure domains including metros, highways, and international projects. RVNL is currently executing metro projects in key cities such as Kolkata, Chennai, Mumbai, Pune, Indore, Surat, Ahmedabad, and Nagpur. With a proven track record and consistent “Excellent” ratings from the Department of Public Enterprises for fourteen consecutive years, RVNL continues to evolve from a railway-focused PSU into a major player in India’s overall infrastructure landscape.
