Cabinet approves new broad-gauge line in Chhattisgarh

The Union Cabinet on Wednesday approved a new broad-gauge electrified line in Chhattisgarh that will be undertaken through a first-of-its-kind joint-venture with the state, a statement said.

The 294-km Katghora-Dongargar line is estimated to cost around Rs 5,950 crore. It will be implemented by a special purpose vehicle (SPV) -- Chhattisgarh Katghora-Dongarhgarh Railway Limited -- with equity participation from the railways, Chhattisgarh Railway Corporation Ltd (CRCL), and private stakeholders. CRCL is a joint venture between the railways and the state government on a 49:51 basis.

The project will benefit Korba, Bilaspur, Mungeli, Kabirdham and Rajnandgaon districts. This new line will open the unserved areas for industrial development through the movement of freight to the busy Jharsuguda-Nagpur section of the Howrah-Mumbai route by avoiding busy yards of Bilaspur, Champa and Durg stations, the statement said.

With opening up of the Raigarh district (Raigarh-Mand) to coal mining, it is expected that the South Eastern Coalfields Ltd and various end-use miners will increase coal mining in the state from the present 150 mtpa (million tons per annum) to 250 mtpa in near future, the statement said.

This will add nearly 30-35 mtpa capacity to railways system, which is nearly three per cent of its present output, it added.