Odisha urges Centre to sanction two rail projects on cost sharing basis

With the projected RoR of Jeypore-Malkangiri link being 12 per cent, the state govt has agreed in principle to bear 25 per cent of the construction cost of the project

Keeping in view low or negative rate of return (RoR) of Jeypore-Malkangiri and Jeypore-Nabarangpur rail link projects, the state government has urged the Railways ministry to sanction these projects on cost sharing basis.

"The Odisha government has time and again raised demand for sanctioning Jeypore-Malkangiri and Jeypore-Nabarangpur railway projects but it has not yet been sanctioned probably due to low RoR. Both these projects are proposed in one of the most backward Naxal affected tribal regions of the country", R C Majhi, state commerce & transport minister wrote to Railways minister D V Sadananda Gowda.

With the projected RoR of Jeypore-Malkangiri link being 12  per cent, the state government has agreed in principle to bear 25 per cent of the construction cost of the project. The funding support of the state government is expected to raise RoR of the project to 17 per cent, higher than the cut off criteria of 14 per cent fixed by the Ministry of Railways.

On the contrary, factoring in the negative RoR of and Jeypore-Nabarangpur railway project, the Odisha government has agreed to provide the entire land free of cost and also bear 50 per cent of the construction cost. The state government has pitched for national status on this rail project, citing that it is going to bring socio-economic benefit to the Naxal affected and tribal dominated region.