Under the Ministry of Shipping, Sagarmala aims at promoting port-led development along India’s 14,500 km long coastline. Projects worth Rs.18,795/- crore under implementation.
NEW DELHI: Aimed at bringing down logistics costs by providing rail connectivity to ports, Indian Port Rail Corporation along with other agencies are implementing projects worth Rs 187.95 billion (Rs 18,795 crore), the government has said.
IPRCL, a joint venture between major ports and Rail Vikas Nigam Ltd (RVNL), as a dedicated SPV is developing railways as a mode of transport in the port sector under the government’s ambitious initiative Sagarmala – a flagship programme for port led-development in the country.
“More than 50 per cent of the rail connectivity projects identified under Sagarmala are under implementation through various agencies such as IPRCL,” Ministry of Shipping has said in its latest report.
As many as 70 rail connectivity projects for 4,247 km length were identified to be implemented at a cost of about Rs 467.28 billion (Rs 46,728 crore), the report said.
Of the 70 identified projects, 27 projects are currently under implementation for 1,967 km at a cost of about Rs 187.95 billion (Rs 18,795 crore), it said.
Thirteen projects having a length of 426 km have already been completed at a cost of Rs 25.92 billion (Rs 2,592 crore), as per the report.
It also said that 30 more projects entailing an investment of Rs 253.41 billion (Rs 25,341 crore) are under pre-implementation stage to provide 1,967 km connectivity.
Under the Ministry of Shipping, Sagarmala aims at promoting port-led development along India’s 14,500 km long coastline.
As part of Sagarmala, more than 400 projects at an estimated infrastructure investment of more than Rs 7 trilliion (Rs 7 lakh crore), have been identified across port modernisation & new port development; port connectivity enhancement, port-linked industrialisation and coastal community development.
In order to execute the last mile rail connectivity and internal rail projects of the major ports more effectively and efficiently, the SPV IPRCL – was incorporated under the Companies Act, under the administrative control of the Ministry of Shipping.
Ninety per cent of the paid-up equity of the company has been provided by the 11 major ports and 10 per cent by the Rail Vikas Nigam Limited (RVNL).
The authorised capital of the company is Rs 5 billion (Rs 500 crore) and paid-up capital is Rs 1 billion (Rs 100 crore).
The government has earlier said that the work of the SPV will result in substantial reduction in dwell time of cargo at ports and bring down the overall logistic cost for trade.