Odisha signs pact with rail ministry for rail networks in 7 districts

State govt has already announced to bear 50% project cost

The state government today signed a memorandum of understanding (MoU) with the Indian Railways to provide rail connectivity to seven districts in Odisha including the Naxal infested Malkangiri and Nabarangpur districts.

Rail links will be established in five other districts- Boudh, Kendrapara, Kandhamal, Deogarh and Nayagarh.

To ensure rail connectivity to the tribal districts, the state government has already announced to bear 50% project cost along with free land for Jeypore-Nabarangpur line and 25% project cost for Jeypore-Malkangiri routes.

"The full route alignment is yet to be known. Moreover, the project cost can be known after the special purpose vehicle (SPV) is formed", said state commerce & transport minister Ramesh Majhi.

Railways minister Suresh Prabhu said, "The potential for rail network in Odisha needs to be exploited and this MoU will go a long way in meeting that requirement."

The SPV would have 51% stake of the state government and the balance 49% is to be held by the Railways.

Earlier, the state government has forged an SPV with coal miner Mahanadi Coalfields Ltd (MCL) and Ircon International Ltd under Railways ministry to evacuate coal.

A company named Mahanadi Coal Railway Ltd has been formed with an equity participation of 64% by the MCL, 26 by Ircon International and the balance by state PSU Odisha Industrial Infrastructure Development Corporation (Idco).

The company, initially, will develop Angul-Balram rail link covering around 14 km length with a capacity to transport 92 million tonne of coal. In due course, the rail link will complete the Angul-Balram-Talcher-Angul loop to facilitate unidirectional movement of wagons. The project cost of first project is pegged at around Rs 100 crore.