The Hindu Business Line : RVNL seeks partners for equity

Rail Vikas Nigam Ltd (RVNL) has invited strategic investors to pick up equity stake soon in several rail link projects being implemented on public-private partnership basis.

The projects for which equity would be invited are Bharuch-Dahej gauge conversion, Krishnapatnam Rail Road gauge conversion, Surat-Hazira new line, Tughlakabad-Greater-Noida (Dadri) new line, and Angul-Sukinda Road, said a senior official.

The Bharuch-Dahej gauge conversion project (62 km long), with a total project cost of Rs 197 crore, is likely to have an equity element of Rs 75 crore and the rest would be debt, said a senior official. It may have equity participation by Adanis, Oil and Natural Gas Corporation (ONGC) and Gujarat Industrial Development Corporation, Gujarat Maritime Board, apart from RVNL.

The Rs 523-crore Angul-Sukinda Road new rail link project (100 km long) in Orissa may have equity participation from Jindal Steel and Bhusan Steel, apart from RVNL.

The rail link between Obulavaripalle and Krishnapatnam in Andhra Pradesh would be handled by Krishnapatnam Rail Road Corporation Ltd, a special purpose vehicle. 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 equity partners include RVNL (30 per cent), Government of Andhra Pradesh (13 per cent), Krishnapatnam Port Company Ltd (30 per cent) and other strategic investors that include iron ore exporters (27 per cent).

Equity participation has also been invited for the Surat-Hazira new line project (36 km long) to be built at a cost of Rs 120 crore and Tughlakabad - Dadri new line project (36 km long) to be built at a cost of Rs 544 crore.

Other priority projects that are on the fast track include the Haridaspur-Paradip, Bhiladi-Samadari, Vallarpadam-Edapally rail links, said the official.