Rail Vikas Nigam Limited (RVNL) has announced securing a significant infrastructure contract valued at Rs 2,977 crore from the state-owned mining company NMDC. The contract pertains to the development of a buffer stockyard and blending facility in Visakhapatnam, Andhra Pradesh. This project includes setting up buffer stockpiles and a blending yard with a material handling capacity of 10 million tonnes per annum (MTPA), aimed at enhancing NMDC’s logistics and material management capabilities at the Visakhapatnam port.
RVNL, in an exchange filing, disclosed that it has received the Letter of Award of Contract from NMDC for this project. The company emphasized that this contract is a regular business transaction with a domestic entity and is not categorized as related-party dealings. It was also clarified that neither RVNL’s promoters nor any group companies have any financial or other interests in NMDC.
The completion timeline for the project is set at 42 months from the date of the award. Once operational, the facility is expected to improve the handling, storage, and movement of iron ore and other raw materials, thereby enhancing supply chain efficiency. Buffer stockyards and blending facilities are crucial for mining operations as they aid in inventory management and maintaining consistent material quality for customers.
The proposed infrastructure at Visakhapatnam is anticipated to cater to NMDC’s expanding logistics needs and streamline material handling operations. RVNL, an Indian Navratna Central Public Sector Undertaking under the Ministry of Railways, is at the helm of this significant project.
