RVNL wins ₹2,977 crore NMDC contract for 10 MTPA logistics hub at Visakhapatnam
Synopsis
RVNL has landed a ₹2,977 crore contract from NMDC to build a 10 MTPA buffer stockyard and blending facility at Visakhapatnam — one of India's busiest mineral export ports. The 42-month project signals RVNL's growing reach into industrial logistics well beyond its core rail mandate.
Key Takeaways
RVNL has won a ₹2,977 crore contract from NMDC Limited announced on 20 June .
The project involves setting up a buffer stockyard and blending facility with 10 MTPA handling capacity at Visakhapatnam, Andhra Pradesh .
Completion is targeted within 42 months from the date of the Letter of Award.
RVNL confirmed the deal is not a related-party transaction; neither its promoters nor group companies hold interest in NMDC .
The facility will enhance iron ore storage, blending, and supply chain efficiency at the Visakhapatnam port .
RVNL is a Navratna Central Public Sector Undertaking under India's Ministry of Railways .
Rail Vikas Nigam Limited (RVNL) on Saturday, 20 June disclosed that it has secured a ₹2,977 crore infrastructure contract from state-owned mining giant NMDC Limited to develop a buffer stockyard and blending facility at Visakhapatnam, Andhra Pradesh. The project, disclosed through an exchange filing, will create a material handling capacity of 10 million tonnes per annum (MTPA) at the Visakhapatnam port.
What the Contract Covers
The scope of work involves setting up buffer stockpiles and a blending yard capable of handling 10 MTPA of iron ore and other raw materials. According to the exchange filing, RVNL received the Letter of Award from NMDC for the project, which is expected to significantly strengthen the mining company's logistics and material management operations at the port.
RVNL confirmed in its filing: 'Rail Vikas Nigam Limited has received Letter of Award of Contract from NMDC Limited for Setting up of Buffer Stockpiles & Blending Yard of 10 MTPA handling capacity at Vizag, Andhra Pradesh.'
Project Timeline and Compliance
The facility is scheduled for completion within 42 months from the date of award. RVNL clarified that the contract was secured in the normal course of business from a domestic entity and does not constitute a related-party transaction. The company further stated that neither its promoters nor any group companies hold any financial or other interest in NMDC.
Why This Facility Matters
Buffer stockyards and blending facilities are critical infrastructure in mining logistics, enabling companies to manage inventories, maintain consistent raw material quality, and smooth out supply chain disruptions. The proposed installation at Visakhapatnam is designed to support NMDC's expanding logistics requirements and facilitate more efficient movement of iron ore from mine to market.
Notably, Visakhapatnam is one of India's key port gateways for mineral exports, making this facility strategically significant for NMDC's supply chain. This contract adds to RVNL's growing portfolio of non-rail infrastructure projects, reflecting the Navratna PSU's broader mandate under the Ministry of Railways.
RVNL's Expanding Order Book
Rail Vikas Nigam Limited, a Navratna Central Public Sector Undertaking under the Ministry of Railways, has been steadily diversifying its project base beyond conventional rail infrastructure. Securing a large-ticket contract from a mining major like NMDC underscores the company's capability to execute complex industrial logistics projects. Once operational, the Visakhapatnam facility is expected to enhance supply chain efficiency for iron ore handling and boost NMDC's port-side operations.
Point of View
The timing matters: India's steel sector is under pressure to cut logistics costs, and a dedicated port-side blending facility can meaningfully compress lead times. The real question is execution — RVNL's 42-month timeline will be tested by land, clearance, and supply-chain variables that are harder to control at a port than on a rail corridor.
NationPress
21 Jun 2026
Frequently Asked Questions
What is the RVNL-NMDC contract announced on 20 June?
Rail Vikas Nigam Limited (RVNL) has been awarded a ₹2,977 crore contract by NMDC Limited to construct a buffer stockyard and blending facility with 10 MTPA handling capacity at Visakhapatnam, Andhra Pradesh. The project was disclosed via an exchange filing on 20 June.
What will the Visakhapatnam facility do?
The facility will store, blend, and manage iron ore and other raw materials at the Visakhapatnam port, improving NMDC's logistics and supply chain efficiency. Buffer stockyards help mining companies maintain consistent material quality and manage inventory at scale.
When will the RVNL-NMDC project be completed?
The project is scheduled for completion within 42 months from the date of the Letter of Award. No specific operational start date has been disclosed beyond this timeline.
Is this a related-party transaction for RVNL?
No. RVNL has clarified that the contract was awarded in the normal course of business by a domestic entity and does not fall under related-party transactions. The company confirmed that its promoters and group companies have no financial or other interest in NMDC.
Why is Visakhapatnam significant for this project?
Visakhapatnam is one of India's principal port gateways for mineral exports, making it a strategically important location for NMDC's logistics operations. A dedicated blending and storage facility there is expected to reduce handling costs and improve turnaround efficiency for iron ore shipments.
