Financial Daily from THE HINDU group of publications Saturday, May 20, 2006 |
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Logistics
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Railways Web Extras - Other States Kutch Railway bid to improve connectivity Mamuni Das
Connecting hinterland The company is considering a proposal from Sanghi Cement to convert a 100-km rail link between Bhuj and Naliya from narrow gauge to broad gauge.
New Delhi , May 19 In a move that would further improve rail connectivity to the industries situated in coastal and southern Gujarat, Kutch Railway Company Ltd (KRCL) is considering two rail link projects of 100 km each. Both the projects involve gauge conversion and would integrate the concerned areas with the hinterland. The company is considering a proposal from Sanghi Cement to convert a 100-km rail link between Bhuj and Naliya from narrow gauge to broad gauge. The rail link would connect the cement manufacturing plant of Sanghi Cement to the broad gauge rail link connecting Gujarat to Northern India. "Sanghi Cement has written to us indicating that it is ready to fund up to 80-90 per cent of the rail link project through an SPV model wherein other partners can include KRCL and Rail Vikas Nigam Ltd (RVNL)," said Mr Yogendra Sharma, Managing Director, Kutch Railway. The unit is understood to be considering expansion plans to increase its output to about eight million tonnes per annum from the present level of 3-4 mt per annum. "We have already sent the proposal to the Railway Board for its consideration," he said. The estimated cost of the project stands at Rs 200 crore. The 100-km narrow gauge link between Bhuj and Naliya is used primarily by passenger trains at present. Apart from helping move freight, broad gauge conversion would also help passengers as they possibly would not have to change trains at Bhuj as the same rolling stock can be used to move towards the hinterland. Moreover, Kutch Railway is also considering a proposal that includes conversion of another 100-km link between Bhildi and Mehsana from meter gauge to broad gauge. "This link would help link Southern Gujarat to Punjab and can shorten the link to hinterland by about 200 km," said Mr Sharma. The Gujarat Investment Development Board had recently conducted a feasibility report for the route.
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