The Hindu Business Line : AP Govt gives green signal for Krishnapatnam Port rail line

IN a move expected to boost iron ore exports in a big way from Krishnapatnam Port, the State Government has given the `green signal' for laying a new railway line. The proposed Rs 494-crore project, under public-private partnership model, would help exclusive transportation of iron ore and other cargo to the port.

The project could be financed in a debt-equity ratio of 1:1. It is proposed that the Krishnapatnam Port Company would have shareholding of 26 per cent, the State Government 13 per cent, Indian Railways 26 per cent and the strategic partners 35 per cent in the equity of Rs 247 crore of the new corporation, which will take up construction, maintenance and operation of the new railway line.

The 114-km-long railway line between Obulavaripalli (on the Guntakal-Renigunta line) and Krishnapatnam via Venkatachalam would reduce the distance between iron ore-generating stations-Hospet-Bellary and Chennai by 85 km. Currently, the iron is going to Ennore port.

Once Krishnapatnam port becomes operational with the new line, exporting iron becomes more economical to exporter. The reduction in distance between the iron ore mines in Karnataka and Chennai by 85 km would bring down the freight by Rs 6 crore per million tonnes per year, according to official sources.

The Chief Minister, Dr Y.S. Rajasekhara Reddy, held detailed discussions with officials of transport, railways, National Mineral Development Corporation (NMDC) and Krishnapatnam Port on the economics of the project and advantage to the State.

The promoter of Krishnapatnam port Mr N. Choudary agreed to offer more competitive tariff than Ennore port and other surrounding port once the new railway line becomes operational. The NMDC officials also explained that the port would attract exporters in view of the advantages.

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