"The state government has confirmed 10 per cent equity participation in the Special Purpose Venture (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," a statement from Ministry of Shipping said today.
The move is aimed at strengthening supply-side connects from Mahanadi Coalfield mines to Paradip port and will boost coastal movement of 140 MTPA of coal, as envisioned in the Sagarmala National Perspective Plan.
It will also serve four major industrial clusters of Jharsuguda-Sambalpur, Angul-Talcher-Dhenkanal, Kalinganagar Steel Hub and port based industrial area of Paradip, including the third and fourth line development between Budhapank and Salegaon by Indian Railways, the statement said.
"The project estimates an investment of Rs 4,500 crore. The project will be executed by the SPV between IPRCL, RITES, Paradip Port Trust, the state government of Odisha and Mahanadi Coalfields Ltd," it added.
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.