Govt mulls joint venture route to connect mines with tracks

Govt to allow private firms to build and operate critical railway lines connecting Coal India mines to power, steel and cement projects

Top officials of the coal and railway ministries will meet on January 25 to decide on a proposed draft of developing railway lines which would connect coal mines to projects.

Refusing to disclose the investment required for this, coal secretary Anil Swarup said the government was ready to set up joint ventures (JVs) and turning these in to independent profit sectors. According to reports, the government has agreed to allow private firms to build and operate critical railway lines connecting Coal India mines to power, steel and cement projects.

“We have identified 50 railway projects and I have written to the chairman of the Railway Board for his feedback. We will meet on 25 January to discuss it,” he said.

The project not only pertains to developing railway lines but also to increase the avialibilty of railway tracks. “Coal India is looking to develop 415 rakes from the current 250 rakes in next three to four years to match the infrastructure to move the coal which would be mined,” he said.

He said that the production target was 1.5 million metric tonne by 2020 out of which 1 million tonne would be produced by Coal India. “Developing these railway projects is critical to evacuate the coal which is being mined, it is important that the coal we extract reach the target,” Swarup noted.

The government , he said, was also working on coal linkage rationalisation policy to ensure that coal mined goes to the nearest plant. “We have suffered from instance that coal from port was being transferred from port to hinterlands which increases the cost manifold, we want to avoid situations.” According to Swarup, KPMG has submitted a report which says that the government can save Rs 6,000 crore if proper linkage system is implemented.

Addressing concern that the auctioning the linkage will increase the project cost he said that the government want to make the process transparent. "We have set up a committe under additional coal secretary to make the process transparent and a decision would be taken at the appropriate time," he said.