The policy for rail connectivity to coal and iron ore mines (R2CI policy) is not adequately investor friendly and may not achieve the desired outcome of building a self-sustainable and workable PPP (public private partnership) initiative in the coal and iron ore sectors, feels Chief Minister Naveen Patnaik.
Patnaik has written to the Railways minister, requesting the ministry to come out with a suitable policy amenable to attract private sector investment in development of such dedicated rail corridors by suitably amending the present policy.
The existing R2CI policy has two models- capital cost model and special purpose vehicle (SPV) model.
While applicants may choose and indicate preference for one of the models, Ministry of Railways reserves the right to decide which model is applicable and the decision of the ministry will be final.
Under the capital cost model, the cost of construction has to be fully borne by the applicants who may be a single entity or a joint venture entity.
After construction, the ownership of the line would be taken up by Railways at nil cost.
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In case of SPV model, land has to be acquired by the SPV at its cost but ownership of the land will be transferred to the Indian Railways.
Apart some suggesting changes in the RC21 policy, Patnaik has proposed two dedicated rail corridors in the Angul-Talcher and Nayagarh-Banspani belts linking coal and iron ore mines respectively.
To ensure seamless flow of traffic and facilitate easier access between industrial areas, mining areas and ports, he has urged that construction work should commence on the Burhamura-Chakulia, Gunupur-Theruveli and Banspani-Barbil lines.