The rail connectivity to Orissa's Dhamra port, a joint venture between Tata Steel and Larsen & Toubro, will be first such connectivity project in the country under the Indian Railways' New R3i policy (Railways' Infrastructure for Industry Initiative), it is learnt.  

The policy has several objectives such as attracting private sector participation in rail connectivity projects to create additional rail transport capacity, increasing rail share in freight traffic and making rail option more competitive for customers by sharing the cost of construction and allowing them to get a share in freight revenues to be generated on the new line. However, the policy shall not be applicable to connectivity to coal or iron ore mines, directly or indirectly.

Also, only those lines which are 20 km or more in length excluding siding, shall be considered under the policy. The Dhamra port is located 62 km away from the mainline network of the Indian Railways but the total track length will be about 120 km because of loops and sidings and various additional facilities. The port has acquired a 125-metre wide corridor from Dhamra to Bhadrak which can accommodate two rail tracks and a four lane road along with service lines viz. transmission line and pipe lines. Trains will run up to Dhamra Terminal Yard (DTY) wherein handing over and taking over of rakes will take place between Indian Railways and DPCL.

Moreover, the private line model will be applicable to it. There are three other models prescribed under New R3i policy and these are cost-sharing freight rebate model, full contribution-apportioned model and the SPV model. Under the private line model, the Railways will share a portion of the revenue (after deducting various charges) with the Dhamra Port Company Ltd. The ratio for sharing, however, is still to be firmed up.

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