State-run Rail Vikas Nigam Ltd. (RVNL) share price increased by 2.53% on April 11, 2025, after the company was awarded the Lowest Bidder (L1) status for a ₹143.37 crore electric traction upgrade project by Southern Railway. The project aims to enhance the rail network’s capacity and efficiency within 24 months.
The awarded contract is for the “Upgradation work of electric traction system from 1×25 kv to 2×25 kv traction system for Salem Jn. (SA)-Podanur Jn. (PTJ) & Irugur (IGU)-Coimbatore Jn. (CBE)-Podanur Jn. (PTJ) section of Salem division of Southern Railway.” The project aims to boost the rail network’s electric traction capacity to support a 3,000 metric tonne (MT) freight loading target.
This traction system enhancement is expected to improve operational efficiency across a crucial freight corridor. The total cost of the project is estimated at ₹143.37 crore, and it is to be completed within 24 months from the date of commencement.
The project aligns with Indian Railways’ ongoing efforts to modernise its infrastructure and improve the capacity of key freight routes. By switching to a 2×25 kV traction system, the upgrade will facilitate the movement of heavier trains with better energy efficiency and lower maintenance requirements.
RVNL’s ability to secure this contract strengthens its position as a leading infrastructure partner for Indian Railways. The company has been actively involved in delivering critical railway infrastructure projects across the country.
As of the quarter ended December 2024, the Government of India continues to hold a 72.84% stake in RVNL. The company remains a key public sector enterprise under the Ministry of Railways and plays a pivotal role in railway project execution nationwide.
On April 11, 2025, RVNL share price opened at ₹345.00, rising from its previous close of ₹337.65. By the end of the trading session, the stock closed at ₹346.20 on the NSE, marking a 2.53% intraday gain.
The stock’s 52-week high of ₹647.00 was recorded on July 15, 2024. Its 52-week low of ₹245.00 was reached on April 15, 2024.
RVNL’s emergence as the lowest bidder for a key Southern Railway project underscores its role in India’s railway electrification drive. With a significant contract win and continued government backing, the company remains a central figure in the country’s infrastructure development landscape.
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.
Published on: Apr 11, 2025, 6:09 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
