Rail Vikas Nigam Limited (RVNL), a leading public sector railway infrastructure company in India, has secured a Letter of Acceptance (LOA) from Southern Railway for the upgradation of the electric traction system from 1x25 kV to 2x25 kV in the Salem division.

This project represents a significant move toward improving the freight-carrying capacity of this important railway section. It is part of RVNL’s normal business operations, reflecting its steady role in implementing large-scale rail infrastructure upgrades for Indian Railways.

Project Scope and Details

The scope of the awarded work includes upgrading the electric traction system from the older 1x25 kV setup to a modern 2x25 kV system on these critical freight routes:

• Salem Junction to Podanur Junction

• Irugur to Coimbatore Junction to Podanur Junction

This section forms part of Southern Railway’s Salem division, a key freight corridor supporting industries across Tamil Nadu. The upgrade is aimed at achieving a 3000 MT loading target, which will greatly enhance the region’s ability to move bulk freight more efficiently.

Importance of 2x25 kV Electrification

The 2x25 kV traction system is a significant technological improvement over the traditional 1x25 kV system. It allows for:

• Higher power transmission over longer distances

• Support for heavier, longer freight trains

• Reduced energy losses

• Improved operational efficiency

Such upgrades are essential for Indian Railways to handle growing freight demand, reduce congestion, and ensure reliable, faster transport for goods.

Southern Railway’s Strategic Corridor

The Salem–Podanur–Coimbatore section is a crucial freight route serving several industries:

• Textile and garment hubs in Coimbatore and Tirupur

• Engineering and manufacturing centres

• Agricultural and fertiliser distribution

• Consumer goods movement

Upgrading the electric traction system here will reduce operational delays, improve speeds, and ensure that Southern Railway can meet its freight movement targets of 3000 MT effectively.

Contribution to Indian Railways’ Modernisation

This project is part of Indian Railways’ broader vision of 100% network electrification and capacity enhancement. Indian Railways is investing in:

• Complete electrification of broad-gauge routes

• Upgradation of existing electrified lines to higher-capacity systems

• Better freight corridors supporting India’s industrial growth

By adopting 2x25 kV systems, Indian Railways ensures better energy efficiency, reduced environmental impact, and improved service reliability.

Impact on RVNL’s Business

For Rail Vikas Nigam Limited, winning this contract adds to its strong order book. The company has an established reputation for delivering:

• Track doubling projects

• Electrification and signalling work

• Gauge conversion

• Station development

Such projects provide steady revenue streams and strengthen RVNL’s position as a leading railway infrastructure PSU in India.

Stock Exchange Compliance

Being a listed public sector company, RVNL has disclosed this award in compliance with SEBI regulations. Specifically, as per SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, companies are required to inform stock exchanges of material events.

RVNL clarified that the work is in the normal course of its business, and it has made the disclosure to both:

• BSE Ltd. (Scrip: 542649)

• National Stock Exchange of India Ltd. (Scrip: RVNL)

Such transparency ensures investor awareness and compliance with regulatory standards.

Company Profile

Rail Vikas Nigam Limited (RVNL) is a Miniratna Category-I PSU under the Ministry of Railways. Established in 2003, its main functions include:

• Laying new railway lines

• Doubling and tripling of existing tracks

• Electrification projects

• Gauge conversion

• Metro and suburban rail projects

RVNL’s projects span the length and breadth of India, helping modernise the railway network and support economic growth.

Economic and Environmental Benefits

Modernising India’s railway network through electrification and capacity upgrades delivers clear benefits:

• Lower fuel costs by reducing reliance on diesel

• Reduced carbon emissions in line with India’s climate goals

• Improved reliability and speed of services

• Enhanced capacity to move critical freight

Projects like the Salem–Podanur–Coimbatore traction system upgrade will play a vital role in achieving these outcomes.

Future Outlook

As India’s economy grows, demand for efficient, high-capacity freight corridors will increase. Indian Railways’ investment in projects like this demonstrates a long-term strategy to:

• Meet industrial freight demand

• Reduce logistics costs

• Support “Make in India” initiatives

• Enable environmentally sustainable transport

RVNL’s participation ensures the expertise needed to deliver these projects to the highest standards.

Conclusion

The Letter of Acceptance from Southern Railway for upgrading the electric traction system marks yet another milestone for Rail Vikas Nigam Limited. This project will help the Salem division meet its 3000 MT freight loading target, support local industries, and contribute to Indian Railways’ larger electrification and modernisation goals.

RVNL’s proven track record, commitment to timely delivery, and alignment with India’s infrastructure priorities make it a key player in the country’s transport development story. Investors, industry watchers, and the public can see this as a positive step in building a stronger, more capable Indian Railway network for the futur

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