RVNL Declared Lowest Bidder by Ircon International for ₹178.64 Crore Railway Contract

Rail Vikas Nigam Limited (RVNL), a government-owned company focused on developing and modernising railway infrastructure across India, has been declared the lowest bidder (L1) by Ircon International Limited. The contract involves the complete setup and commissioning of advanced railway systems across multiple new stations and block sections. It also includes installing new systems and upgrading existing infrastructure at designated yards.

Scope, Duration and Value

The project covers the supply, installation, testing and commissioning of electronic interlocking systems and telecommunications equipment at 10 newly identified railway stations and several connecting block sections. It also includes setting up a new section control system, a telephone exchange, and making modifications to existing infrastructure in certain station yards. The total time allotted to complete the project is 11 months. The contract is valued at approximately ₹178.64 crore.

Recent Developments 

RVNL has received a Letter of Acceptance (LOA) from Central Railway for the modification of the Overhead Equipment to upgrade the existing 1x25 KV electric traction system to a 2x25 KV AT feeding system in the Itarsi-Amla section of Nagpur Division. This project, valued at ~₹115.79 crore, aims to enhance the loading capacity to 3000 MT. The execution period for this project is set at 24 months. 

Additionally, RVNL has incorporated a new subsidiary, Sabbavaram Sheelanagar Road Development Limited, in Andhra Pradesh. The subsidiary, operating in the construction and infrastructure sector, is fully owned by RVNL (100% shareholding). This move is part of RVNL's strategic expansion, The subsidiary was newly established on May 15, 2025.

Read More: Railway Stocks Rally: RailTel, RITES, IRCON Share Price Jump Up to 30% in May on Strong Q4 FY25 and Orders 

Share Price Performance 

As of May 20, 2025, at 9:45 AM, RVNL Share Price is trading at ₹419.55 per share, reflecting a decline of 2.77% from the previous day's closing price. Over the past month, the stock has surged by 11.87%. The stock's 52-week high stands at ₹647 per share, while its low is ₹301 per share.

Conclusion 

The award of this contract reinforces RVNL's role in modernising India's railway infrastructure. By securing such large-scale projects, RVNL continues to strengthen its position in the railway infrastructure sector.
 

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