Odisha has confirmed 10 per cent equity participation in the Special Purpose Vehicle (SPV) of Indian Port Rail Corporation Ltd (IPRCL) that will be formed for development of a heavy haul rail corridor from Salegaon to Paradip port.

The corridor will strengthen supply side connects from mine to port and will boost coastal movement of 140 million tonne per annum of coal, as envisioned in Sagarmala National Perspective Plan, said a release.

₹4,500-cr investment Including the third and fourth line development between Budhapank and Salegaon by Indian Railways, the project entails an investment of ₹4,500 crore and will be executed by the SPV between IPRCL, RITES, Paradip Port Trust, the Odisha government and Mahanadi Coalfields Ltd.

The rail link will serve as the last-mile connectivity to transport bulk cargo of thermal coal from the Mahanadi Coalfields Ltd (MCL) via coastal shipping at Paradip, to power plants in coastal regions of southern States. It will also serve the four major industrial clusters – Jharsuguda-Sambalpur; Angul-Talcher-Dhenkanal; Kalinganagar Steel Hub; and port-based industrial area of Paradip.

Ministerial panel meet As a precursor to this, an inter-ministerial committee meeting chaired by the Chairman of Railway Board, comprising the Secretaries of Shipping, Coal and Power, was held to firm up plans for harnessing the coastal shipping potential. The committee has awarded approval for preparation of the Detailed Project Report by RITES along the finalised alignment.

The project is part of the port-led development programme of Sagarmala by the Ministry of Shipping to enhance port connectivity and encourage coastal shipping of commodities to reduce overall logistic costs, thereby enabling ports to become drivers of country’s overall economic growth.

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