Shares of Rail Vikas Nigam Limited (RVNL) saw a notable rise of over 2% following the announcement that the company has received a Letter of Acceptance (LoA) from East Central Railway worth Rs 186.77 crore. The contract pertains to the modernization of electric traction systems, marking a significant step in RVNL’s ongoing efforts to enhance India’s railway infrastructure.
The contract involves the design, supply, erection, testing, and commissioning of traction substations, complete with associated switching posts. The project aims to upgrade the electric traction system from 1X25 kV to a more advanced 2X25 kV Auto Transformer (AT) feeding system. This modernization will take place in the Gomoh–Patratu section of the Dhanbad Division, a vital region within the East Central Railway zone.
The project is valued at ₹186.77 crore, inclusive of taxes, with an execution timeline of 540 days.
RVNL shares opened at ₹442.45 and reached a high of ₹451.60, reflecting investor optimism following the contract win. With a 52-week high of ₹647.00 and a low of ₹165.60, RVNL has shown significant volatility in its stock price.
As of 9:22 am, RVNL shares were trading 1.98% higher at Rs 446.40 on the NSE.
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