Idco seeks Rs 150 cr Budget allocation for common infra corridor

Seeks allocation for subscription of equity capital for Brahmani Railways, an SPV formed to execute the project

The state’s land acquisition agency Odisha Industrial Infrastructure Development Corporation (Idco) has sought allocation of Rs 150 crore in the state’s Supplementary Budget for 2014-15 for the common infrastructure corridor planned in the coal rich Angul-Chhendipada belt.

Idco has sought the allocation towards subscription of equity capital for Brahmani Railways Ltd, a special purpose vehicle (SPV) formed to execute the project.

“It is requested that government in commerce and transport may kindly consider for budgetary allocation of Rs 150 crore in the current financial year (2014-15) towards promoter's equity capital in the project SPV-Brahmani Railways Ltd from the Supplementary Budget earmarked for equity contribution by the state government in railway projects”, industries secretary and chairman cum managing director, Idco Vishal Dev wrote to Sanjay Mahapatra, commissioner (rail coordination) and special secretary, commerce & transport.

Idco has already filed application with the concerned district authorities for acquisition of 3,285 acres of land for development of Phase-I of the corridor. It is also in the process of preparing forest diversion proposal (FDP) for diversion of forest land. Rites Ltd, the engineering and consultancy arm of Indian Railways, is preparing the detailed project report (DPR) for the project. The DPR is expected to be submitted to the ministry of railways by November. Discussion is underway with the Railway Board for finalisation of the concession agreement of the common corridor.

SBI Caps, a wholly owned subsidiary of State Bank of India (SBI), has prepared the financial feasibility of the project. A total of 6,200 acres is to be acquired for the project, the total cost of which has been worked out to be Rs 1,240 crore. The common corridor will traverse 143 km stretch, supporting 10 blocks operating in the Talcher coalfields under the command area of Mahanadi Coalfields Ltd (MCL). It is expected to handle coal traffic in excess of 100 million tonne every year.

The proposed corridor will be connected to rail heads at three locations — Jharpada, Angul and Budhapanka. The common corridor will have multiple entry and exit points and no surface crossing. Besides, flyovers have also been proposed to avoid cross movements at junction stations. As many as 55 industries including steel plants and power projects were expected to be beneficiaries of the common infrastructure corridor.