RVNL Share Price in Focus on ₹213 Crore Contract for OHE Upgrade in South Central Railway

Rail Vikas Nigam Limited (RVNL) has been declared the lowest bidder for an overhead equipment (OHE) upgradation contract from South Central Railway. The project covers 195.5 route kilometres (RKM) and 391 track kilometres (TKM) across 2 sections, Duvvada to Rajahmundry and Samalkot to Kakinada Port.

Project Value and Duration

The estimated contract value is ₹213.22 crore. The scope includes design, supply, erection, testing, and commissioning of OHE systems. The project has a scheduled execution period of 24 months.

The upgrade involves transitioning from the existing 1X25 kV system to a 2X25 kV system at the feeding infrastructure. This includes associated feeder and earthing works to support load handling and operational capacity.

Project Location

The work will be carried out in the Vijayawada Division of South Central Railway, located in Andhra Pradesh. The division plays a major role in regional and interstate railway connectivity and spans more than 1,000 RKM.

The route includes access to ports such as Kakinada and supports the movement of goods through key industrial and agricultural zones. The upgraded electrification is expected to help manage higher rail traffic and facilitate longer freight trains.

Read More: Best Railway Stocks for July 2025!

Operational Context

According to RVNL, the work falls under the regular scope of business. The declaration was made through a formal stock exchange filing dated June 27, 2025. Reports suggest that the project is aligned with standard infrastructure improvement efforts undertaken by Indian Railways.

Rail Vikas Nigam Share Price Performance 

As of 10:20 AM on June 30, 2025, RVNL share price was trading at ₹398.50, a 0.87% increase, down 6.35% over 6 months, and 4.61% over the past year.

Conclusion

The contract adds to RVNL’s existing portfolio of railway electrification works. Once completed, the project will support improved power systems on 2 busy railway sections in Andhra Pradesh, enhancing operational capacity and network readiness.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.