Financial Daily from THE HINDU group of publications
Wednesday, Dec 28, 2005
Financial Daily from THE HINDU group of publications Wednesday, Dec 28, 2005 |
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Logistics
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Infrastructure Corporate - Outlook NMDC may invest in Krishnapatnam rail road project Mamuni Das
New Delhi , Dec. 27 NATIONAL Mineral Development Corporation (NMDC) may be one of the strategic investors in Krishnapatnam Rail Road Corporation Ltd (KRRCL). This is subject to clearance from NMDC's parent Ministry of Steel and Mines, said sources close to the development. KRRCL is the special purpose vehicle to be set up to construct the rail link to Krishnapatnam at Andhra Pradesh. It is a public-private partnership project undertaken by Railway Ministry's Rail Vikas Nigam Ltd (RVNL), Government of Andhra Pradesh, Krishnapatnam Port Company Ltd (KPCL) and other strategic investors that include iron ore exporters. The project would provide a rail link to the iron ore exporters in Hospet-Bellary sector. The 113-km long rail link would be built with a landed cost of Rs 588 crore with an equity element of Rs 267 crore and a viability gap funding of Rs 50 crore to be raised from the Ministry of Finance. The rest of the funding would be raised through debt. The equity would be held by RVNL (30 per cent), Andhra Pradesh Government, KPCL (30 per cent) and strategic investors (27 per cent). RVNL, Government of Andhra Pradesh and the Krishnapatnam Port Trust have recently signed a memorandum of understanding to this effect. The 113-km long rail link would have several tunnels with a total length of 8.5 km out of which one tunnel itself would be seven km long. "It could emerge as the longest tunnel in the country, provided no other tunnel with a longer length comes up by the time of its completion," said the official. At present, the longest operational tunnel in the country is the Karbude tunnel on Konkan Railway with a 6.5 km length.
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