Paradip Port to have 51% Stake in Rs 5849 Crore Heavy Haul Rail Corridor proposed by IPRCL

PARADIP: Paradip Port Trust (PPT) will have a 51 per cent stake in the Heavy Haul Rail Corridor proposed by Indian Port Rail Corporation Ltd (IPRCL). The corridor would connect Salegaon (Maharashtra) with the Paradip port.

The project, which is to be developed on joint venture basis, is estimated to cost Rs 5,849.2 crore. While the debt component is pegged at Rs 4,209.7 crore, the residual Rs 1,639.5 crore will come in as equity contribution from the promoters. Apart from PPT, Mahanadi Coalfields Ltd (MCL), the Odisha government and a Railway PSU would have 13 per cent, 10 per cent and 26 per cent equity respectively. Either Rites Ltd or Rail Vikash Nigam Ltd (RVNL) is proposed to be the equity partner.

The Odisha government’s stake is likely to be held through Odisha Industrial Infrastructure Development Corporation (Idco), the state-owned nodal agency for land acquisition and industrial infrastructure development.

The project is proposed to be developed in two phases. In the first phase, the corridor will be built from Salegaon to Kandarpur near Cuttack. This is expected to be completed by 2021, and would help ease congestion around Kandarpur. Subsequently, the corridor is planned to be extended to Paradip port. The commissioning of this phase is set to be co-terminus with an outer harbour planned by the major port under Government of India’s Sagarmala initiative.

Railway Ministry and Road Transport, Ports and Shipping Ministry to collaborate in critical areas such as road-over-bridges (RoBs) and road-under-bridges (RuBs), freight logistics, port-rail connectivity and station redevelopment.

Paradip Port is developing the outer harbour with a capacity to handle 160 million tonne of cargo each year. This project is designed to augment shipping of coal to the southern states. Investment on the outer harbour is pegged at Rs 8200 crore. The outer harbour with a daft of up to 22 metres would be capable of handling large Capesize vessels with 200,000 dwt (dead weight tonnage).

Paradip Port Trust (PPT) has roped in Howe Engineering Products (India) Ltd as consultant for carrying out the feasibility study for its outer harbour project taken up under Government of India’s Sagarmala initiative. The consultant will submit the report within six months.

Indian Port Rail Corporation Limited (IPRCL) holds its maiden AGM – decides to enhance port connectivity and evacuation, integrate with rail network

Indian Port Rail Company Limited (IPRCL), a first of its kind Joint Venture Company (JVC), between the Major Ports under the Ministry of Shipping and Rail Vikas Nigam Limited (RVNL) held its first Annual General Meeting (AGM) in New Delhi yesterday. The company,  registered on 10th July, 2015 as a Public Limited Company under the Companies Act, 2013, was formed with the objective to provide efficient rail evacuation systems to Major Ports and thereby enhance their capacity and throughput.

Some of the key accomplishments of IPRCL during the first year of its operation are:

1)      During the financial year 2015-16, 20 railway projects were taken up across eight Major ports. Out of this eleven works with total project cost of Rs 7636.15 Crores were for preparation of Feasibility and Detailed Project Report (DPR) and nine works with total project cost of Rs . 643.77 Crores were for Project Execution.

2)      IPRCL has completed the pre-feasibility study of a heavy haul rail corridor from Ib Valley-Talcher to Paradip and Dhamra to evacuate coal mines of Mahanadi Coal Ltd (MCL) to the ports for shipping them to the southern states of India through the coastal route. On the above mentioned corridor IPRCL is taking up the third and fourth line from Salegoan to Paradip that will be dedicated to freight. The development of this project will give a major fillip to the Government’s initiative to promote multi-modal logistics and coastal shipping.

3)      The company has already started rail infrastructure modernization in Kolkata, Vishakhapatnam, Chennai, Tuticorin and New Mangalore Ports. Rail infrastructure expansion and modernization works are likely to commence from April 2017 in Kandla and JNPT ports and in Haldia Dock Complex (HDC).

4)      The company has also taken up the task of preparation of DPR for Rail and Road connectivity of the proposed Major Port at Colachel (Enayam) in Tamil Nadu.

Current Summary of Projects under IPRCL

S.No Particulars No. of Projects Cost (approx.) in lakhs
A Work already commenced 8 15924
B DPR under finalization, bids to be invited by December 2016. Contracts are likely to be finalized by March 2017 4 57113
C DPR under finalization and bids shall be invited during 2017-18 7 432600
D DPR has been finalized. 6 22801
  Total 25 528438
E Works which are taken up for feasibility studies 2 1500000

In the coming years, IPRCL, as a dedicated SPV will continue to develop railways as a mode of transport in the Port sector and will pave the way for seamless integration of port–railway system with the Indian Railways network. Sagarmala, the flagship programme of Ministry of Shipping has four pillars namely: – port modernization, port connectivity and evacuation,  port led industrialization and coastal community development. IPRCL will strengthen the second pillar of port connectivity and evacuation through its various dedicated port connectivity projects. The Salegoan-Pardip dedicated freight corridor model will be replicated in future in other port connectivity projects.

The AGM was chaired by Shri. Rajive Kumar, Secretary, Ministry of Shipping and attended by Sh. Anoop Kumar Agrawal, Managing Director (MD), IPRCL and chairman/representatives of eleven (11) Major Ports and Rail Vikas Nigam Limited (RVNL).

Indian Port Rail Corporation Ltd (IPRCL) is looking at enhancing port connectivity and evacuation while paving the way for seamless integration of port?railway system with the Indian Railways network, government said today. As a joint venture between major ports and Rail Vikas Nigam Ltd (RVNL), “in the coming years, IPRCL, as a dedicated SPV will continue to develop railways as a mode of transport in the port sector”, the Shipping Ministry said in a statement. It said IPRCL will strengthen the second pillar of Sagarmala, the flagship programme of government which has four pillars — port modernisation, port connectivity and evacuation, port-led industrialisation and coastal community development. Under the Ministry of Shipping, the programme aims at promoting port-led development along Indias 14,500 km long coastline. As part of Sagarmala, more than 400 projects, at an estimated infrastructure investment of more than Rs 7 lakh crore, have been identified across port modernisation & new port development; port connectivity enhancement, port-linked industrialisation and coastal community development. These projects will be implemented by relevant Central Ministries, State Governments, Ports and other agencies primarily through the private or PPP mode. IPRCL will strengthen port connectivity and evacuation through various dedicated projects. The Salegoan-Pardip dedicated freight corridor model will be replicated in future in other port connectivity projects. IPRCL held its first Annual General Meeting here yesterday. In 2015-16, 20 railway projects were taken up across eight Major Ports. Of this, 11 works with total project cost of Rs 7,636.15 crores were for preparation of Feasibility and Detailed Project Report (DPR) and nine works with total cost of Rs 643.77 crore were for project execution. IPRCL has completed the pre-feasibility study of a heavy haul rail corridor from Ib Valley-Talcher to Paradip and Dhamra to evacuate coal mines of Mahanadi Coal Ltd (MCL) to the ports for shipping them to the southern states of India through the coastal route. “On the above mentioned corridor IPRCL is taking up the third and fourth line from Salegoan to Paradip that will be dedicated to freight. The development of this project will give a major fillip to the governments initiative to promote multi-modal logistics and coastal shipping,” the statement said. The company has already started rail infrastructure modernisation in Kolkata, Vishakhapatnam, Chennai, Tuticorin and New Mangalore Ports. Rail infrastructure expansion and modernisation works are likely to commence from April 2017 in Kandla and JNPT ports and in Haldia Dock Complex (HDC). The company has also taken up the task of preparation of DPR for Rail and Road connectivity of the proposed Major Port at Colachel (Enayam) in Tamil Nadu.

 

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