Rail Vikas Nigam Ltd forms two JVs

Rail Vikas Nigam Limited has signed MoU with National Highways Authority of India (NHAI) in connection with Construction of Multi Modal Logistics Parks across PAN India under Bharatmala Pariyojana. In this connection, Rail Vikas Nigam Limited (RVNL) has formed two JVs viz., BENGALURU MMLP PRIVATE LIMITED and CHENNAI MMLP PRIVATE LIMITED.

The JV is for Development of Multi Modal Logistics Parks (MMLP) at Obalapura, in Bengaluru rural District in the State of Karnataka through Public Private Partnership on Design Build Finance Operate and Transfer (DBFOT) basis.

Govt of India is focusing on improving the efficiency in movement of cargo across the country by bridging critical infrastructure gaps and came out with Logistics Policy for Country.

Cabinet Committee of Economic Affairs (CCEA) has approved BMP-Phase-1 which includes the Development of 35 MMLPs.

The main benefits of MMLP are,

i) Hub and spoke model of transport network compared to point-to-point network.

ii) Lowers transportation cost by enabling a seamless modal shift to rail & vice versa

iii) Lower handling costs due to presence of best in class modern and mechanized handling infrastructure

iv) Reduces secondary freight costs by co-location of large warehouses and value-added services

v) MMLPs benefit from economies of scale, by creating shared infrastructure and due to availability of more options for selection of competitive and reliable logistics providers.

Shares of Rail Vikas Nigam Limited was last trading in BSE at Rs. 77.15 as compared to the previous close of Rs. 78.15. The total number of shares traded during the day was 1362385 in over 8367 trades.

The stock hit an intraday high of Rs. 79.85 and intraday low of 77.00. The net turnover during the day was Rs. 106306623.00.

Source : Equity Bulls

Keywords

RailVikasNigam INE415G01027 RVNL NHAI MoU MultiModalLogisticsParks BharatmalaPariyojana