Rail Vikas Nigam Ltd. (RVNL) has announced the formation of two joint venture (JV) companies, namely the Bengaluru MMLP Pvt. Ltd. and Chennai MMLP Pvt. Ltd.

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The two JV companies are formed after the Memorandum of Understanding (MoU) signed with the National Highways Authority of India (NHAI) in September 2021 for the construction of Multi Modal Logistics Parks (MMLP) across the country under the Bharatmala Pariyojana.

According to RVNL’s intimation to the bourses, it had signed a joint venture agreement with a special purpose vehicle (SPV) of NHAI, National Highways Logistics Management Limited (NHLML), and the Karnataka Industrial Area Development Board (KIADB) Bengaluru.

The agreement was signed for the development of MMLP at Obalapura in the Bengaluru rural district on a Public Private Partnership on Design Build Finance Operate and Transfer (DBFOT) basis. The company estimates the development of rail connectivity to MMLP Bengaluru to be worth Rs 136.16 crore.

While RVNL has a 16.33 percent ratio in the joint venture, KIADB’s share in the JV stands at 32.38 percent and NHLML’s at 51.29 percent.

For the development of MMLP at Mappedu in Chennai on a Design Build Finance Operate Transfer (DBFOT) basis, RVNL had signed a JV agreement with NHLML, Tamilnadu Industrial Development Corporation (TIDCO) Ltd, and Chennai Port Authority (ChPA).

RVNL estimated the development of rail connectivity to MMLP Chennai to be worth Rs 166.64 crore. NHLML’s share in the JV stands at 40.18 percent, ChPA’s at 26.02 percent, RVNL’s at 26 percent and TIDCO’s at 7.8 percent.

On Wednesday, Rail Vikas Nigam Ltd had emerged as the lowest bidder for two Gujarat Metro Rail Corporatio projects worth Rs 1,058 crore. The projects are at the Ahmedabad Metro Rail Corporation and the Surat Metro Rail Corporation.

Shares of RVNL ended little changed at Rs 77 on Friday.