Odisha to have 10 pc stake in Rs 4,500 cr coastal rail project

In what could provide a big push to coastal shipping, Odisha government has confirmed 10 per cent equity participation in an SPV to be formed for the development of a Rs 4,500-crore heavy haul rail corridor from Salegaon to Paradip.
"The state government has confirmed 10 per cent equity participation in the Special Purpose Venture (SPV) of Indian Port Rail Corporation Ltd (IPRCL) that will be formed for development of a heavy haul rail corridor from Salegaon to Paradip port," a statement from Ministry of Shipping said today.
The move is aimed at strengthening supply-side connects from Mahanadi Coalfield mines to Paradip port and will boost coastal movement of 140 MTPA of coal, as envisioned in the Sagarmala National Perspective Plan.

The rail link will serve as the last mile connectivity to transport bulk cargo of thermal coal from the Mahanadi Coalfields Ltd (MCL), via coastal shipping at Paradip, to power plants in coastal regions of southern states.
It will also serve four major industrial clusters of Jharsuguda-Sambalpur, Angul-Talcher-Dhenkanal, Kalinganagar Steel Hub and port based industrial area of Paradip, including the third and fourth line development between Budhapank and Salegaon by Indian Railways, the statement said.
"The project estimates an investment of Rs 4,500 crore. The project will be executed by the SPV between IPRCL, RITES, Paradip Port Trust, the state government of Odisha and Mahanadi Coalfields Ltd," it added.

As a precursor to this, an Inter-Ministerial Committee (IMC) meeting chaired by the Chairman, Rail Board, comprising the Secretaries of Shipping, Coal and Power was held to firm up the actionable plan for harnessing the coastal shipping potential.
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, thereby enabling ports to become drivers of country's overall economic growth.