Rail Nigam bags Rs 730 crore order from Himachal electricity board to cut distribution losses

Rail Vikas Nigam Ltd (RVNL) has bagged a major contract worth Rs 730 crore from the Himachal Pradesh State Electricity Board (HPSEBL) for construction of distribution infrastructure in Himachal Pradesh’s central zone.

The project is aimed at loss reduction and is valued at exact Rs 729,82,19,992 (seven hundred twentynine crore eightytwo lakh nineteen thousand nine hundred and ninetytwo rupees).

The project, the tenders for which were floated on July 13, 2023, is stated to be domestic in nature and is to be executed within 24 months, as per the RVNL’s stock exchange filing.

The RVNL made the disclosure in a statement, saying the company had received the letter of acceptance (LoA) for the development of the distribution infrastructure in the Central Zone of Himachal Pradesh.

“It is hereby informed that Rail Vikas Nigam Limited has received letter of acceptance from the HPSEBL for ‘Development of Distribution Infrastructure at Central Zone of Himachal Pradesh under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme (Loss Reduction Work)’,” the company said in a press release.

This project falls under loss reduction works, a key initiative aimed at improving power distribution efficiency and minimizing transmission losses.

In the exchange filing on March 4, 2025, the RVNL said the project was previously scheduled to be completed by 2025 (that is within 24 months of the issuance of the tender).

Meanwhile, RVNL shares climbed almost 8 per cent in early trade on Wednesday (March 5, 2025) after the news of the company securing the significant order from the HPSEBL went public.

S Gopal Puri