New Delhi: Kendrapara MP Baijayant Panda today called on union railway minister Suresh Prabhu and discussed about the progress of Haridaspur-Paradip rail link project which is falling on the Khurda Road Division of East Coast Railway.
Panda informed the minister that South Korean steel major Posco has withdrawn from the project due to inordinate delay in the company’s proposed 12 MTPA steel plant in the State.
Since Posco was a part of the special purpose vehicle (SPV), christened as Haridaspur Paradip Railway Company Limited to expedite the project, the investment, after the company’s withdrawal has become necessary.
The parliamentarian recommended Prabhu to direct Container Corporation of India Limited (CCIL) to invest Posco’s share amount for the expedition of the project.
Posco which had provided around Rs 27.5 crore for land acquisition for the project announced to withdraw from the rail link project in April this year.
The rail link was crucial for the Posco project as the company planned to get the raw material using this link from the mineral rich belt of the State.
Notably, Rail Vikash Nigam Ltd (RVNL) holds a major share of 48.43 per cent in the SPV set up in 2006.
While two central PSUs – the 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) of Odisha is one of the shareholders.
After Posco withdrew from the project, Jindal Steel Private Limited, Essel Mining and Industries Limited, Rungta Mines Limited and MSPL remain the other partners in the SPV.