Rail Vikas Nigam Ltd (RVNL) has announced a significant achievement with a new project order valued at ₹156 crore from the South Western Railway. This development adds to RVNL’s streak of consecutive order wins, driving positive sentiment around the stock.
RVNL Share Price Performance
Despite starting Monday’s trading session on a subdued note, RVNL shares opened at ₹367.45 on the Bombay Stock Exchange (BSE), slightly below the previous closing price of ₹371.60. The broader market also faced pressure, with the Sensex witnessing a substantial decline of 700 points, reflecting a bearish sentiment across the board.
However, RVNL’s stock demonstrated resilience amidst the market downturn. Over the past five trading sessions, the stock has surged by nearly 10%, propelled by consistent order wins and positive investor sentiment. This upward movement is particularly notable when compared to the closing price of around ₹333 recorded last Tuesday.
The continued momentum suggests that investors remain optimistic about RVNL’s growth prospects, particularly as the company secures more high-value infrastructure projects.
RVNL Secures EPC Contract from South Western Railway as Lowest Bidder
On February 21, following the close of market hours, Rail Vikas Nigam Limited (RVNL) announced that it had emerged as the Lowest Bidder (L1) for a significant project awarded by South Western Railway. This development marks another milestone in RVNL’s ongoing efforts to expand its infrastructure portfolio within India’s railway sector.
Project Scope and Details
The awarded contract follows the Engineering, Procurement, and Construction (EPC) model. Under the terms of this agreement, RVNL will be responsible for the design, supply, erection, testing, and commissioning of critical railway systems. Specifically, the project involves setting up a 2×25 KV Overhead Equipment (OHE) system and a Power Supply Installation (PSI) system.
The OHE system is crucial for railway operations as it transmits electricity to trains through overhead lines, facilitating smooth and energy-efficient movement. Complementing this, the PSI system provides power to remote railway equipment and ensures uninterrupted electrical supply across different sections of the rail network.
In addition to these core responsibilities, RVNL will also handle a range of supplementary works, including Electrical General Services, as well as Engineering and Telecommunication tasks. These efforts will contribute to enhancing the overall operational efficiency and safety of the railway system.
The project will cover the railway section between Rayadurga and Topavadagada in the TK-RDG corridor, a key route under South Western Railway’s jurisdiction. Once completed, the upgraded infrastructure is expected to bolster connectivity and streamline railway operations across this segment.
Project Value and Timeline for RVNL’s South Western Railway Contract
The total value of the project awarded to Rail Vikas Nigam Limited (RVNL) by South Western Railway is estimated at ₹156,35,81,976.60. In words, this amounts to ₹156 crore, 35 lakh, 81 thousand, 976 rupees, and 6 paisa. This figure includes all applicable taxes and reflects the comprehensive cost of executing the contract, covering design, procurement, construction, testing, and commissioning of the required railway infrastructure.
The timeline for completing the project has been set at 18 months from the date of commencement. Within this period, RVNL is expected to fulfill all contractual obligations, including the installation of the 2×25 KV Overhead Equipment (OHE) system, Power Supply Installation (PSI) system, as well as the associated electrical, engineering, and telecommunication works.
This time-bound execution framework underscores the importance of adhering to strict deadlines to ensure timely delivery and operational readiness of the upgraded railway section between Rayadurga and Topavadagada.
RVNL Secures Multiple Project Wins Across Key Sectors
In addition to its recent success with South Western Railway, Rail Vikas Nigam Limited (RVNL) has secured several other significant project wins, further strengthening its position in the infrastructure and telecommunications sectors.
BSNL Project Implementation Agency (PIA) Agreement
On February 20, 2024, RVNL announced the signing of a Project Implementation Agency (PIA) Agreement for projects in the UP (West) and UP (East) regions. This agreement is part of a larger tender issued by Bharat Sanchar Nigam Limited (BSNL), aimed at enhancing telecommunications infrastructure across these regions.
RVNL is undertaking this project in collaboration with two key consortium partners—HFCL Limited and Aerial Telecom Solutions Pvt. Ltd. Together, the consortium will work on upgrading and expanding BSNL’s telecom infrastructure, contributing to improved connectivity and communication services in Uttar Pradesh.
Bengaluru Suburban Rail Project (BSRP)
Earlier, on February 18, 2025, RVNL announced receiving a Letter of Acceptance from the Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE). This project is a vital component of the Bengaluru Suburban Rail Project (BSRP), which aims to enhance the city’s suburban rail network to ease congestion and improve urban mobility.
Under this contract, RVNL will be responsible for constructing nine stations across Bengaluru. The scope includes building one elevated station and eight ground-level stations, covering crucial areas in the suburban rail corridor. The total contract value for this project stands at ₹554.46 crore, highlighting the scale and importance of the development in improving public transportation in the city.
These consecutive order wins underscore RVNL’s growing influence and operational capabilities in both railway infrastructure and telecommunications, further solidifying its reputation as a key player in India’s infrastructure growth story.