Shares of Rail Vikas Nigam Ltd (RVNL) skyrocketed 11% on 16 May after the company announced securing a contract to upgrade their existing electric traction system.

In its regulatory filing, the company said, “RVNL has received LOA from Central Railway for OHE Modification Work for Up-gradation of existing 1×25 KV Electric Traction System to 2×25 KV at Feeding System in Itarsi – Amla Section in Nagpur Division of Central Railway to meet 3000 MT Loading Target.”

The company’s board of directors has scheduled a meeting on 21 May 2025 to evaluate and approve the audited financial results (standalone and consolidated) for the quarter and year ended 31 March 2025.

The upgrade will be carried out in the Itarsi–Amla section of the Nagpur Division. The revamped traction system is designed to support freight trains with loads of up to 3,000 metric tonnes (MT), aiming to boost the efficiency of one of the region’s key freight routes.

The project is valued at Rs 115.79 crore (Rs 115,79,37,241.11, including all applicable taxes). Rail Vikas Nigam Ltd (RVNL) announced the contract award through a stock exchange filing, stating that the project was secured as part of its regular business activities.

Formed in 2003, RVNL serves as the project execution arm of the Ministry of Railways, focused on delivering critical transportation infrastructure projects across India. The PSU has played a pivotal role in advancing railway modernisation and expanding network capacity.

At 11:52 am, the shares of RVNL were trading 10.27% higher at Rs 414.90 on NSE. 

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