The Hindu Business Line : Ircon to build rail link for Mittal Steel in Liberia

Project details
Ircon plans to take up the project by September and complete it within a year's time
It has also decided to bid for construction of the underground portion of the Phase II of Delhi Metro's rail line

New Delhi , May 11

Ircon International is all set to implement a $110-million rail link construction project for the global steel major Mittal Steel in Liberia. The project involves rehabilitation of a 250-km long railway line (that had been abandoned 15 years ago) and 350 wagons for developing a mining area in the war-ravaged country.

Last year, Mittal Steel entered into an agreement with the Government of Liberia that gave the company access to approximately one billion tonnes of iron ore reserves. The company is now involved in developing the mines and related railway and port infrastructure around the mining area to start shipments by 2007.

"The mines are served by a 250-km rail link. We have to ready the link to move about 15 million tonnes of iron ore per annum by the end of 2007," the Ircon Managing Director, Mr B.S. Kapur, told Business Line.

The Railways' public sector unit plans to take up the project by September this year and complete it within a year's time.

"Towards the end of this month, we would have final discussions with Mittal Steel," said Mr Kapur, adding that the initial discussions took place in March. Moreover, Ircon is also likely to construct a new rail line in Venezuela at an estimated cost of $350 million.

"Recently, senior Government officials from Venezuela had a meeting with the Railway Board Chairman, the Ministry of External Affairs and Ircon. We agreed to take up the preliminary study on the alignment and cost for line," said Mr Kapur.

Delhi Metro Phase II

Ircon has also decided to bid for construction of the underground portion of the Phase II of Delhi Metro's rail line.

"We would bid along with German firm Dywidag, Japanese firm Shimuzu, Samsung and L&T," said Mr Kapur.

The same consortium had built the underground line between Kashmiri Gate and Central Secretariat stations in Delhi Metro's Phase I construction.

Ircon has tied up with real estate developer, the Uppal Group, with whom it would jointly bid for constructing and running the budget hotels of Indian Railways in five sites.