The Hindu Business Line : S-E Rly in pact with Mahanadi Coalfields

SOUTH Eastern Railway (SER) on Thursday signed a memorandum of understanding (MoU) with Mahanadi Coalfields Ltd (MCL) to implement a rail infrastructure project to facilitate transportation of large quantities of coal from Gopalpur-Monoharpur blocks under MCL in Orissa.

Mr P. Sengupta, Chief Operations Manager of SER, and Mr B.M. Nag, Director (Finance) of MCL, signed the MoU. Senior officials of SER, including the General Manager, Mr R.R. Bhandari, and Additional General Manager, Mr S.R. Thakur, and of MCL were also present.

MCL has plans for development of new mines in Gopalpur-Monoharpur blocks having the potential to produce an estimated 21 million tonnes (mt) of coal annually in the 11th Plan.

As per the MoU, SER will acquire over 600 acres of land in Orissa, lay new rail lines from Jharsuguda to the mine areas covering a route length of 46 km and track length of 58 km and construct a 10-span bridge over the Ib river.

The total cost of the rail infrastructure is estimated at Rs 220 crore or so, to be provided almost entirely by MCL.

The mines, according to MCL, will be ready for production within three years from now and therefore the rail infrastructure should be in place by that time.

It might be recalled that the project was originally undertaken by South Eastern Coalfields Ltd (SECL) under which came the IB Valley coalfields. Accordingly, SECL engaged RITES (Rail India Technical & Economic Services) for the preparation of a techno-economic feasibility report on transportation of coal by rail to different consumers. The report was submitted by RITES as early as 1991.

There has been a vast change in the coal linkage scene since then. First, IB Valley coalfields have been brought under MCL. Also, the proposed coal blocks, originally linked to western India power houses, have now been linked to power plants located in eastern and southern regions.

RITES, along with SER and MCL, therefore reviewed the project and suggested that the siding should takeoff from Jharsuguda railway station. In its original report, RITES had examined two others stations such as Belpahar and Himgir.

SER is bullish about the project as it will bring in an additional freight traffic of about 20 mt annually. However, the Railways also concedes that the biggest challenge facing it will be land acquisition, more so because part of the land to be acquired is believed to be covered with forest. Which means land acquisition process may be tardy. The timely completion of the project therefore will depend on how soon the process of land acquisition could be completed.

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