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RVNL not keen on Rs 800 cr coal corridor project

Common coal corridor will have capacity of handling 138 mn tonne coal per annum

BS Reporter Kolkata/ Bhubaneswar
Last Updated : Apr 10 2013 | 10:49 PM IST
Rail Vikas Nigam Ltd (RVNL) is not keen on partnering Odisha Industrial Infrastructure Development Corporation (Idco) for implementing the Rs 8000-crore common coal corridor project planned for the coal rich Angul-Chhendipada-Talcher belt.

“From today's negotiations, we have come to know that RVNL is not keen on implementing the coal corridor project. But the government has decided to go ahead with the plan”, said Odisha chief secretary B K Patnaik.

“First, a special purpose vehicle (SPV) will be formed for executing the project. Initially, this SPV will be formed with Idco. Then, we have to find an agency for planning and designing work. Also, we have to choose a suitable model for project implementation”, he said.

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The common coal corridor will have a capacity to handle 138 million tonne of coal per annum.

“The proposed corridor will cater to requirement of all coal blocks in the Talcher coalfields. Initially, 1800 acres of land will be needed for the project. The coal corridor will pass through railheads like Jharpada, Talcher, Chhendipada, Kaniha and Budhapanka”, said N C Mohanty, advisor (coal) to state steel & mines department.

It may be noted that the state government had notified an SPV called Mahanadi Railway for developing a common corridor for rail, water and power in the coal rich Angul-Chhendipada-Talcher region.

The SPV was to be developed as a 50:50 joint venture between OMC and Odisha Industrial Infrastructure Development Corporation (Idco). Later, OMC pulled out of the project following exposure by the Comptroller & Auditor General of India (CAG) on irregularities in development of coal blocks across the country.

After exit of OMC, Idco decided to develop the 143-km coal corridor on its own.

The project is designed to have multi-point centralised loading stations conceived along the corridor rather than individual bulb connections with a view to avoid interference or wastage of coal bearing areas.

Road and water pipe lines will run parallel to rail alignment. More than 50 industries in sectors like steel, aluminium and power sectors are expected to be the beneficiaries of this proposed corridor.

It may be noted a number of power and steel companies, which have been allotted coal blocks in the area, are facing resistance with regard to land acquisition for construction of private railway sidings.

The construction of a common corridor is expected to overcome the problem.

A similar corridor is also being considered for the Ib valley region.

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First Published: Apr 10 2013 | 8:28 PM IST

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