Mumbai: Rail Vikas Nigam Limited (RVNL) has secured a major contract worth Rs 2,977 crore from NMDC Limited, giving a strong boost to its infrastructure business and future order book.
The company announced the development through a regulatory filing to stock exchanges on June 20. The project is domestic in nature and will add to RVNL’s growing list of large infrastructure projects.
Project to Be Developed in Vizag
Under the contract, RVNL will set up buffer stockpiles and a blending yard with a handling capacity of 10 million tonnes per annum (MTPA) in Vizag, Visakhapatnam.
This facility will help NMDC improve the storage, handling and blending of minerals before transportation and distribution. Better logistics infrastructure is expected to improve operational efficiency and reduce delays.
The project is important for strengthening supply chain management in the mining and metals sector.
Execution Timeline Set at 42 Months
According to the company, the entire project is expected to be completed within 42 months from the date of award.
RVNL said the order falls under its normal course of business and will be executed based on standard contract conditions agreed with NMDC.
The contract value includes Goods and Services Tax (GST) at 18 percent.
Positive for Business Growth
Market experts believe this order will improve RVNL’s revenue visibility over the next few years. Large, long-term projects like this help companies maintain stable cash flows and strengthen their market position.
The latest contract also highlights RVNL’s growing role beyond railway infrastructure, with the company expanding into broader engineering and industrial development projects.
The company further clarified that the contract is not a related-party transaction and that promoters have no interest in the awarding entity.
