RVNL Secures ₹111 Crore Project from Southern Railway

Rail Vikas Nigam Limited (RVNL), a state-run company, has received the Letter of Award for a ₹111 crore project from Southern Railway. The contract involves upgrading railway signalling systems in the Chennai Division and is to be executed within 18 months.

Details of the Project

The scope of work includes the provision of Multi-Section Digital Axle Counters (MSDAC) with existing Dual Counter Track Circuits (DCTC) at various stations. Additionally, it involves replacing the remaining Audio Frequency Track Circuits (AFTCs) in MAS-GDR and MSB-TBM automatic block signalling sections of the Chennai Division.

This development follows RVNL’s earlier declaration as the lowest bidder (L1) for the project on August 27, 2024. The project will boost the operational infrastructure in the designated sections of Southern Railway.

Financial & Execution Timeline

The total value of the contract stands at ₹111 crore. RVNL is required to complete the project within 18 months from the date of commencement. While RVNL has not disclosed the impact of this project on its order book, the company continues to secure infrastructure development projects from various railway divisions.

Market Reaction

Shares of RVNL were trading at ₹470.75, reflecting a 0.7% decline for the day at around 1:00 PM. Despite some recovery in recent trading sessions, up 17% from its November 2024 lows, the stock remains down approximately 30% from its peak of ₹647 earlier this year. However, it has gained 158% in 2024, showcasing movement in its valuation.

To bring it all together, the ₹111 crore project from Southern Railway adds to RVNL’s portfolio of infrastructure initiatives. With a focus on boosting railway signalling in the Chennai Division, this project aligns with broader plans to modernise India’s rail network.

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