Rail Vikas Nigam gets 6.45B rupees contract from NMDC

Rail Vikas Nigam gets 6.45B rupees contract from NMDC

Rail Vikas Nigam Secures ₹284.52 Crore Contract from NMDC for Chhattisgarh Residential Project

Rail Vikas Nigam Limited (RVNL) has been awarded a Letter of Acceptance (LOA) by the National Mineral Development Corporation (NMDC) to construct a residential tower in Kirandul, Chhattisgarh, valued at ₹284.52 crores (approximately $64.5 million), including all taxes according to the announcement. The project, announced on February 26, 2026, is part of NMDC's initiative to enhance residential infrastructure for its workforce in the region.

The contract underscores RVNL's expanding role in urban infrastructure development, adding to its existing portfolio of railway and housing projects. NMDC, a state-owned mineral development company, has emphasized improving employee welfare through expanded housing facilities, aligning with broader government goals to boost infrastructure in mineral-rich states like Chhattisgarh.

Details regarding the project timeline, construction specifications, and funding mechanisms have not yet been disclosed, with both companies stating that further information will be shared in the coming weeks. However, the scale of the contract suggests a medium-term commitment from NMDC to address housing demands in Kirandul, a key hub for the company's operations.

For RVNL, the award represents a strategic win in a competitive infrastructure sector. The company's stock has shown moderate volatility in recent months, reflecting broader market uncertainties in infrastructure contracting. Analysts note that successful execution of this project could enhance RVNL's credibility for future bids in residential and industrial infrastructure.

The development also highlights ongoing government efforts to stimulate economic activity in Chhattisgarh through public-private partnerships. As of early 2026, India's infrastructure sector remains a focal point for policy support, with budgetary allocations prioritizing housing and urban development.

Source: Newsonprojects