RVNL to improve Dhanbad division’s electric traction system

Rail Vikas Nigam Ltd. (RVNL) is obtaining a project to upgrade the electric traction system in the Dhanbad Division, which will improve railway efficiency and performance.

Rail Vikas Nigam Ltd. (RVNL), a public sector enterprise, declares that it secured a letter of acceptance (LoA) from East Central Railway for a major infrastructure project. The contract calls for the design, supply, building, testing, and commissioning of traction substations and related switching posts to modernise the electric traction system in the Gomoh-Patratu portion of the Dhanbad Division.

This project will upgrade the current electric traction system from 1X25 kV to 2X25 kV AT feeding system. The project, valued at ₹186.77 crore (including of taxes), has a 540-day completion timeframe and intends to improve railway efficiency and performance on important routes.

RVNL is the lowest bidder for a ₹642.57-crore power infrastructure project with Punjab State Power Corporation Ltd, as disclosed on November 29th. Despite contract wins, RVNL reported a 27 percent year-on-year reduction in net profit for the September 2024 quarter, with earnings falling to₹286.9 crore from₹394.3 crore last year. Revenue from operations decreased by 1.2 percent YoY to ₹4,855 crore, while EBITDA plummeted by 9 percent. Margins narrowed to 5.6 percent from 6 percent due to continued operational issues.

Rail Vikas Nigam Ltd. (RVNL) is a public sector organisation under the Ministry of Railways in India that established itself to carry out infrastructure development projects to improve the country’s rail network. RVNL specialises in the planning, execution, and administration of rail-related projects, including track doubling, gauge conversion, electrification, and the construction of new railway lines, bridges, and key infrastructure.

The organisation frequently works with joint ventures and private partners to efficiently complete large-scale projects. RVNL, which focuses on modernising India’s railway infrastructure, plays an important role in supporting the government’s objective of extending and upgrading rail connections to satisfy rising passenger and freight transit demands.

For more details, visit: https://rvnl.org/home

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