Odisha govt commits 10% equity participation in rail corridor to transport thermal coal

Rail link will serve as the last mile connectivity to transport bulk cargo of thermal coal from Mahanadi Coalfields to power plants in coastal regions of southern states

Odisha government has committed to pump in 10% equity in the special purpose vehicle of Indian Indian Port Rail Corporation Ltd (IPRCL), RITES, Paradip Port Trust and Mahanadi Coalfields Ltd for development of railway corridor for transportation of thermal coal from eastern India to power plants in southern India, to be built at an estimated investment of Rs 4,500 crore.

The rail link will serve as the last mile connectivity to transport bulk cargo of thermal coal from the Mahanadi Coalfields, via coastal shipping at Paradip, to power plants in coastal regions of southern states, an official statement said.

It will also serve the four major industrial clusters in Odisha -- Jharsuguda-Sambalpur, Angul-Talcher-Dhenkanal, Kalinganagar Steel Hub and port based industrial area of Paradip. The project estimates an investment of Rs 4,500 crore.

The project is part of the port-led- development programme of Sagarmala by the Ministry of Shipping to enhance port connectivity and encourage coastal shipping of commodities to reduce overall logistic costs.

Indian Port Rail Corporation was formed to provide efficient rail evacuation systems to major ports and thereby enhance their handling capacity and efficiency. The company is funded by all 12 major ports and Rail Vikas Nigam Ltd.

The objective of the Sagarmala project is to promote port-led direct and indirect development and to provide infrastructure to transport goods to and from ports quickly, efficiently and cost-effectively.