Paradip Port to have 51% stake in Rs 5,849 cr rail corridor

Corridor will Salegaon in Maharashtra to the port; project to be developed on JV basis

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Paradip Port Trust (PPT) will have a 51 per cent stake in the heavy haul rail corridor proposed by Indian Port Rail Corporation Ltd (IPRCL). The corridor would connect Salegaon (Maharashtra) with the Paradip port.

The project, which is to be developed on joint venture basis, is estimated to cost Rs 5,849.2 crore. While the debt component is pegged at Rs 4,209.7 crore, the residual Rs 1,639.5 crore will come in as equity contribution from the promoters. Apart from PPT, Mahanadi Coalfields Ltd (MCL), the Odisha government and a Railway PSU would have 13 per cent, 10 per cent and 26 per cent equity respectively. Either Rites Ltd or Rail Vikash Nigam Ltd (RVNL) is proposed to be the equity partner.

The Odisha government's stake is likely to be held through Odisha Industrial Infrastructure Development Corporation (Idco), the state-owned nodal agency for land acquisition and industrial infrastructure development.

The project is proposed to be developed in two phases. In the first phase, the corridor will be built from Salegaon to Kandarpur near Cuttack. This is expected to be completed by 2021, and would help ease congestion around Kandarpur. Subsequently, the corridor is planned to be extended to Paradip port. The commissioning of this phase is set to be co-terminus with an outer harbour planned by the major port under Government of India's Sagarmala initiative.

Paradip Port is developing the outer harbour with a capacity to handle 160 million tonne of cargo each year. This project is designed to augment shipping of coal to the southern states. Investment on the outer harbour is pegged at Rs 8200 crore. The outer harbour with a daft of up to 22 metres would be capable of handling large Capesize vessels with 200,000 dwt (dead weight tonnage).

Paradip Port Trust (PPT) has roped in Howe Engineering Products (India) Ltd as consultant for carrying out the feasibility study for its outer harbour project taken up under Government of India's Sagarmala initiative. The consultant will submit the report within six months.