The Hindu Business Line : Boosting connectivity in Orissa — Push for Central funding for rail, road projects

With Orissa poised for an industrial revolution of sorts, especially in steel, and a huge spurt in freight movement likely in the next couple of years, the authorities are reviving languishing rail and road projects and launching new ones. Apart from pinning its hopes on some big names, both Indian and foreign, to undertake many of these projects, the State Government is pushing for special Central funding for some of this vital connectivity.

THE Orissa Government has appealed to the appropriate authorities in New Delhi to create a special corpus of funds to expedite the implementation of rail and road projects considered vital for the State. The size of the corpus, according to one estimate, should be around Rs 3,000 crore.

Interestingly, at least two of the rail projects identified by the Orissa Government, namely Daitari-Banspani (155 km) and Haridaspur-Paradip (82 km), have been taken up for implementation by the Rail Vikas Nigam Ltd (RVNL) and some part of the work (the 50 km stretch between Banspani and Keonjhar on the Daitari-Banspani project) has been completed. However, these being single-line projects, the Orissa Government emphasises the need for upgrading them into double-line networks.

What has also been upsetting for the State government is that the 90-km long Angul-Duburi-Sukinda Road single-line project was sanctioned several years ago but there has been hardly any progress so far.

Another project of interest to the State government is the extension of the Naupada-Gunupur (90 km) line, currently undergoing gauge conversion, to Theruvali (70 km).

Among the road projects being pushed for special Central funding are the six-laning of the Barbil-Chandikhol highway (60 km), Cuttack-Paradip highway (100 km) and National Highway 5A; i.e. from Chandikhol to Paradip (80 km).

The Orissa Government's anxiety to have better connectivity to move larger volumes of freight is understandable.

The State is now poised for an industrial revolution or, to be more specific, a steel-making revolution. Several big names, both national and international, have shown definite interest in launching projects in the State's iron-ore belt, the largest in the country. Some of them have already signed MoUs.

According to State government sources, as many as 25 MoUs have been signed. The implementation of these projects will require movement of an additional 50 million tonnes of traffic, both raw materials and finished products.

If the projects being contemplated by the Tatas, Essar, Sterlite and Posco are taken into account, the figure, it is estimated, will jump to 100 million tonnes.

The Orissa Government has identified three belts in the State where iron and steel and sponge iron units are to come up in a big way. These include the Barbil-Duburi belt, the Cuttack-Dhenkanal belt and the Sambalpur-Jhasuguda-Rourkela belt.

The Kalahandi-Bolangir belt, rich in bauxite deposits, holds out the promise of major aluminium projects. Big names such as L&T, Aditya Birla Group, Vedanta and BHP Billiton are already floating tenders in this connection.

The Railways generally prefers to pursue a cautious and conservative approach in matter of new projects. It will not be interested in projects (except those launched on political expediency) unless convinced of their traffic potential. Understandably so.

A few years ago, Orissa was all agog over the prospect of massive industrialisation and the associated large-scale goods movement, only to draw blank subsequently.

However, inquiries with the East-Coast Railways reveal that work on several projects is ongoing though the levels of progress vary widely, from land acquisition to near commissioning.

The construction of new broad gauge lines include such projects as Daitari-Banspani (155 km, estimated cost Rs 590 corre), Lanjigarh-Junagarh (55.67 km, Rs 67 crore), Haridaspur-Paradip (82 km, Rs 340 crore), Sukinda Road-Angul (90 km Rs 415 crore), Talcher-Bimlagarh (154 km, Rs 727 crore) and Khurda Road-Bolangir ( 290 km, Rs 700 crore).

Save the Talcher-Bimlagarh and Khurda Road-Bolangir lines, which are to facilitate passenger movement primarily, all other projects are designed to boost freight movement. The gauge conversion work is in progress on the Naupada-Gunupur section (90 km, Rs 89 crore).

The doubling projects include, among others, the 32-km Raghunathpur-Cuttack stretch on the Cuttack-Paradip section, 24-km stretches between Norla Road and Lanjigarh Road and between Titlagarh and Kesinga on the Titlagarh-Lanjigarh section on the Raipur-Vizag route, Sambalpur-Rengali (22.7 km), Rajathgarh-Barang (31.5 km), Khurda Road-Puri (15.3 km), Cuttack-Barang (11.7 km) and Khurda Road-Barang (35 km).

Perhaps the most critical is the construction of the second bridge on the Mahanadi river. Several of these projects will be implemented by RVNL including the bridge construction.

On completion, the electrification projects, currently in progress, are to ensure faster movement of rakes and, therefore, improved turnaround time. To implementsome of the road and rail projects, there are proposals to float SPVs, in which the Orissa Government too has evinced interest in participating.

Orissa Government sources sincerely feel that, along with better connectivity, additional port facilities too have to be created in the State. Right now, the State has only one port at Paradip, a major port. Another major port is to be developed at Dhamra, north of Paradip.

The Dhamra port will be a private port, to be set up jointly by Tata Steel and L&T. Since it will be a virtually captive port to meet the requirements of the existing as well as future steel plants of the Tata Steel, the Orissa Government is keen to develop an all-weather port at Gopalpur.

Gopalpur is a minor port that has been closed for the past two years or so. The Adani Group first showed interest in the project, only to withdraw subsequently.

Fresh bids were invited and responses received from several Indian firms and a foreign firm. The selection of the bidder will be finalised shortly, it is learnt.

The State government sources however seem convinced that there is scope for even a fourth port in the State considering the projected industrialisation at a high pace and the consequent jump in freight movement, both by road and rail.

For the probable fourth port, the State government is pinning a good deal of hope on some of the big names, both Indian and foreign.

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