State-owned engineering company Rail Vikas Nigam Limited (RVNL) has emerged as the lowest bidder for a ₹2,977 crore contract from NMDC Limited to develop a 10 million tonnes per annum (MTPA) integrated iron ore handling and blending facility at Visakhapatnam.
The project forms a key part of NMDC’s strategy to move up the value chain by introducing branded iron ore products for domestic and international steelmakers. The proposed facility will allow the company to blend ores from its various mining complexes to produce customised grades with consistent chemical and physical characteristics, addressing specific requirements of customers in the steel industry.
The facility will be developed at Visakhapatnam Port on an engineering, procurement and construction (EPC) basis. The scope of work includes the design, engineering, construction, testing and commissioning of a fully mechanised ore handling system comprising unloading, stacking, reclaiming, blending, storage and ship-loading infrastructure.
NMDC currently produces iron ore from its major mining operations in Chhattisgarh and Karnataka. However, ore quality and composition can vary across deposits. The new blending yard will enable the company to combine material from different mines and create standardised products, a practice widely adopted by leading global mining companies to enhance product value and improve customer confidence.
The initiative is expected to help NMDC strengthen its presence in premium iron ore markets while improving realisations through differentiated product offerings. By creating branded grades, the company aims to supply steel manufacturers with ore that meets specific performance requirements in blast furnaces and other steelmaking processes.
The Visakhapatnam facility will also enhance NMDC’s logistics capabilities by providing dedicated infrastructure for storage and movement of large volumes of iron ore. Its location at one of India’s busiest ports will facilitate efficient handling of both domestic and export cargo, reducing turnaround times and improving supply chain efficiency.
The project comes at a time when India’s steel sector is expanding rapidly, driven by infrastructure development, manufacturing growth and increasing domestic consumption. With the country targeting a significant increase in steel production capacity over the coming years, demand for high-quality iron ore and reliable raw material supplies is expected to rise substantially.
For RVNL, the contract represents one of its largest non-railway infrastructure assignments and further expands its presence in the ports, mining and logistics sectors. The company has been diversifying its order book beyond traditional railway projects, securing contracts across roads, ports, energy and industrial infrastructure.
Once operational, the 10 MTPA facility is expected to become a critical component of NMDC’s marketing and logistics network, supporting the miner’s plans to develop branded iron ore products while strengthening its position in both domestic and overseas markets.