Three Crucial Rail Link Projects Get Cabinet Approval
The government today approved the construction of three crucial rail link projects worth over Rs 2483 crore to ensure coal supply to power plants and necessary infrastructure support for industrial development in the country.
The new 121.70-km-long broad gauge line between Gevra Road and Pendra Road and 63-km-long Raigarh
(Mand collieries) and Bhupdeopur are two ambitious rail link projects which got the approval of the Cabinet Committee on Economic Affairs.
"The projects aim at ensuring smooth movement of freight and coal in the region," said Railway Minister Pawan Kumar
The CCEA also approved doubling of the 247.73-km-long Palanpur-Samakhiali section under the Western Railway at a cost of Rs 1266.89
While the Gevra Road-Pendra Road rail line is estimated to cost Rs 838.02
crore, the Rajgarh-Bhupdepur line is to cost Rs 379.08 crore. Both the projects have high rate of returns with 22.39 per cent and 26.11 per cent respectively.
Both the projects would be funded through a joint venture consisting of
IRCON, a Railway PSU, and other stakeholders - South Eastern Coalfields Ltd and Chhattisgarh government.
IRCON will spearhead the process of formation of Special Purpose Vehicle (SPV) with 26 percent equity and Chhattisgarh will transfer government land free of cost.
Chhattisgarh will thus participate to the level of 10 per cent in equity, either through capitalisation of land or through cash contribution, and SECL will take the balance equity.
The second broad gauge line between Raigarh and Bhupdeopur will also be funded through a joint venture consisting of
IRCON, South Eastern Coalfields Ltd and government of Chhattisgarh.
The projects are likely to be completed in the next five years during the 13th Plan period. The coal field is connected by road at present.
The Palanpur-Samakhiali line doubling project is expected to cater to immense potential of bulk traffic from port as well as from Kutch region.
"There is a bottleneck because of the exiting single line. That is why it has become essential to make it double line for the fast movement of trains," said
He said the line will also serve as a feeder line for the Western Dedicated Freight Corridor.
After doubling the section will also provide necessary infrastructure support for industrial development in Gujarat.