Rail Vikas Nigam (RVNL) has emerged as the lowest bidder (L1) for an electrification infrastructure project awarded by North Eastern Railway, according to an exchange filing made by the company on Wednesday.
What the contract involves
The project entails the design, supply, erection, testing, and commissioning of traction substations along with associated switching posts for a 2×25 KV auto-transformer (AT) traction feeding system.
The work covers the Varanasi-Prayagraj section under the Varanasi Division of North Eastern Railway and is aimed at upgrading the capacity of electric traction power supply installations.
Contract size and timeline
The total value of the contract is Rs 129.46 crore, inclusive of applicable taxes. The project is to be completed within 730 days of the award. The contract has been awarded by a domestic entity and does not involve any related-party transactions, the filing stated.
RVNL said the work falls within the normal course of business for the company.
About RVNL
Rail Vikas Nigam is a Central Public Sector Undertaking that comes under the Ministry of Railways. It was incorporated in 2003. The company acts as the construction arm of Indian Railways.
RVNL’s share price was down 0.72% as of May 20 post-market closing. The stock was down 8.99% in the past month, and it was further down 25.43% in the past year.