Shares of Rail Vikas Nigam Ltd (RVNL) surged 4.5% to touch a day’s high of Rs 338.55 on 28th January after the company said it has emerged as the lowest bidder (L1) for a key overhead electrification (OHE) upgrade project under South Central Railway, as announced on Tuesday (27th January).

According to an exchange filing, the contract involves the design, supply, erection, testing, and commissioning of OHE upgradation. The project will upgrade the existing 1×25 kV system to a 2×25 kV feeding system. It includes feeder and earthing works on the Ongole (OGL)–Gudur (GDR) section of the Vijayawada Division under South Central Railway. Overall, the total project length covers 154 route kilometres (RKM) and 462 track kilometres (TKM).

RVNL said the order has been awarded by South Central Railway, which is a domestic entity.

As per the filing, the project is to be completed within 24 months. The total order value stands at Rs 242.50 crore, including applicable taxes.

Earlier, on 16th January, RVNL had also announced that it emerged as the L1 for another contract from South Eastern Railway. This order is valued at Rs 87.56 crore excluding GST. It involves the supply, installation, and commissioning of an IP-based video surveillance system in LHB coaches.

At 1:13 PM, shares of RVNL were trading 4.41% higher at Rs 338.20 on NSE.

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