BJD leader urge CONCOR to subscribe the equity of Posco from Haridaspur-Paradeep Railway project

Bhubaneswar: Senior BJD leader and Member of Parliament Baijayant Panda has urged Union Railway Minister Suresh Prabhu to direct the Container Corporation of India Limited (CONCOR) to subscribe the equity of Posco from Haridaspur-Paradip railway project.

The South Korean steel major had provided Rs.27.5 crore as paid up capital for land acquisition for this project. After withdrawal of the company, the Centre is reportedly in talks with CONCOR to buy the 10 per cent equity of Posco in the project.

A special purpose vehicle (SPV) was formed in 2006 to expedite the project and Posco was a part of the SPV, christened as Haridaspur-Paradip Railway Company Limited (HRPCL). Rail Vikash Nigam Ltd (RVNL) holds a major share of 48.43 per cent in the SPV.

While two Central PSUs __ Paradip Port Trust and Steel Authority of India Limited (SAIL) are part of the SPV, the State Government’s Industrial Infrastructure Development Corporation Limited (IDCO) is one of the shareholders.

Jindal Steel Private Limited, Essel Mining and Industries Limited, Rungta Mines Limited and MSPL are the other partners in the SPV and all of them have business interests in the State.

The railway project was crucial for the development of industries and boost socio-economic growth of Kendrapara district, Panda said, adding that it will also solve the traffic problem on Chandikhol-Paradip Expressway.