RVNL gets LoA for East Central Railway Project worth ₹187 Crore

4 Dec 2024 , 09:22 AM

State-owned Rail Vikas Nigam Ltd (RVNL) said on Tuesday, December 3, that it has obtained a letter of acceptance (LoA) from East Central Railway. The contract is for the “design, supply, erection, testing, and commissioning of traction substations with associated switching posts” as part of an upgrade to the electric traction system in the Gomoh-Patratu sector of the Dhanbad division.

The project seeks to upgrade the current electric traction system from 1X25 kV to a 2X25 kV AT feeding system. The contract for ₹186.77 Crore (including taxes) is set to be executed within 540 days. The plan is part of ongoing efforts to upgrade railway infrastructure and improve operational efficiency on major routes.

On November 29, the state-owned firm stated it was the lowest bidder for a ₹642.57 Crore power infrastructure project by Punjab State Power Corporation Ltd.

RVNL’s net profit decreased 27% year-on-year (YoY) to ₹286.9 Crore in the September 2024 quarter, from ₹394.3 Crore in the same period previous year, due to lower operating margins and earnings. Revenue from operations decreased by 1.2% year on year to ₹4,855 Crore, from ₹4,914.3 Crore in the previous year.

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