The Hindu Business Line : Chhattisgarh, Rlys, SAIL, NMDC tie up for new rail link

New link: The Minister for Railways, Mr Lalu Prasad, flanked by the Minister for Chemicals, Fertilisers and Steel, Mr Ram Vilas Paswan (right), and the Chief Minister of Chhattisgarh, Dr Raman Singh, in the Capital on Tuesday during the signing of an MoU for construction of new broad gauge rail line from Dalli-Rajhara to Jagdalpur. —

Our Bureau

New Delhi, Dec 11 Indian Railways, Chhattisgarh State Government, NMDC and SAIL today signed an MoU to construct a 235-km rail link from Dalli-Rajhara to Jagdalpur via Rowghat. The rail link, a project envisaged in 1995-96 rail budget, would provide connectivity to both Rowghat and Bailadila iron ore mines.

The project cost, estimated at Rs 968.6 crore (at 2004-05 price level) and likely to be revised upwards, would be shared by SAIL, NMDC, Railways and Chhattisgarh Government.

Explaining why the project assumes significance now, officials said, “The iron ore deposits of Dalli-Rajhara area are tapering, while abundant iron ore deposits are available in Rowghat area, to which there is no rail link.”

Project DELAY

“The original MoU for the construction of this new line was signed in 1998. As per the MoU, SAIL was to fund the first phase of the project. However, for want of requisite mining permission in Rowghat area and forestry clearances, SAIL did not deposit necessary funds with the Railways,” Railway Board Chairman Mr K.C. Jena said pointing out the reason for delay in the project.

The project would be undertaken in two phases. Phase-I (Dalli-Rajhara to Rowghat: 95 km), and which would be constructed in two phases. Phase-I is a 95-km rail link from Dalli-Rajhara to Rowghat whereas Phase-II is 140 km from Rowghat to Jagdalpur.

SAIL will bear the entire cost of Rs 304 crore for Phase-I, which is targeted to be completed in five years. With the Phase-I completion, SAIL can access iron ore for its Bhilai steel plant from Rowghat. At present, land acquisition for the Phase-I project is going on and SAIL has already deposited Rs 53.5 crore with Railways.

Phase-II will cost Rs 640 crore crore – which will be shared by Indian Railways (Rs 376 crore), SAIL (Rs 141.3 crore), Chhattisgarh (Rs 76.3 crore) and NMDC (Rs 70.7 crore). The process of land acquisition for the Phase-I has already begun.

Return on investment

According to NMDC Managing Director, Mr Rana Som, “NMDC would get a return on investment of seven per cent for 37 years (in the form of an annuity income), apart from being allocated wagons on a priority basis on the link.”

The new railway line will include one tunnel (60 meters), 46 road under-bridges, 16 road over-bridges, 42 major bridges and 303 minor bridges. Railways has planned to construct ten stations initially.

Pact signed

A memorandum of understanding (MoU) in this regard was signed today among these four agencies in the presence of the Union Minister of Railways, Mr Lalu Prasad; the Union Minister of Chemical & Fertilisers and Steel, Mr Ram Vilas Paswan; and the Chief Minister of Chhattisgarh, Dr Raman Singh; and the Minister of State for Railways, Mr R Velu. The signatories to the agreement included Mr Jena, Mr Shivraj Singh, Chief Secretary, Government of Chhattisgarh; Mr S.K. Roongta, Chairman, SAIL; and Mr Som.

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