Visakhapatnam: Rail Vikas Nigam Limited has received a Letter of Award (LoA) from NMDC Limited for a large-scale infrastructure project in Visakhapatnam (Vizag). The project involves the setting up of buffer stockpiles and a blending yard with a handling capacity of 10 million tonnes per annum (MTPA), aimed at improving bulk material storage, management, and logistics efficiency.
The total contract value is approximately ₹2,977 crore, inclusive of 18% GST, and will be executed over a period of 42 months.
Project Scope: Buffer Stockpiles and Blending Yard Development
The awarded contract focuses on developing advanced bulk material handling infrastructure, including:
- Construction of buffer stockpiles for efficient material storage
- Development of a blending yard for large-scale industrial processing
- Logistics optimization systems for bulk material movement
- Infrastructure designed to support high-volume industrial operations
The project is expected to strengthen NMDC’s supply chain efficiency, particularly in handling and blending operations at its Vizag facility.
Read also: RVNL Wins ₹967.93 Crore Order for 4 Major Railway Bridges on Odisha’s Bhadrak–Vizianagaram Corridor
Contract Value and Execution Timeline
The key financial and execution details of the project include:
- Total contract value: ₹2,977 crore (including GST @ 18%)
- Handling capacity: 10 MTPA
- Execution period: 42 months
- Contract type: Domestic infrastructure contract
- Award process: Competitive bidding under general contract conditions
The order has been awarded under the normal course of business and complies with regulatory disclosure norms.
Regulatory Disclosure and Compliance
According to the company’s filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:
- The contract is a domestic order
- There are no related party transactions involved
- Promoter and group companies have no interest in NMDC Limited
- The transaction is conducted at arm’s length
This ensures transparency and compliance with standard governance practices.
Strategic Importance of the Project
The project marks a significant step in strengthening India’s bulk material handling infrastructure. With increasing demand for efficient logistics in mining and mineral processing sectors, the development of a high-capacity blending yard in Vizag is expected to:
- Improve operational efficiency
- Reduce material handling delays
- Support large-scale industrial throughput
- Strengthen regional infrastructure capabilities
About Rail Vikas Nigam Limited (RVNL)
Rail Vikas Nigam Limited is a public sector enterprise under the Ministry of Railways, Government of India. It specializes in executing railway infrastructure projects, including new line construction, electrification, and capacity augmentation. The company plays a key role in fast-tracking critical rail infrastructure development across India.
About NMDC Limited
NMDC Limited is a leading public sector mining company under the Government of India, primarily engaged in iron ore production and mineral exploration. It is one of the country’s largest iron ore producers and focuses on enhancing mining capacity and developing efficient supply chain infrastructure to support industrial demand.
