9 firm consortium to build Rs598cr Orissa rail link

Nine companies, including POSCO and SAIL, today signed shareholders' agreement for the construction of the Rs 598 crore, 82-km, Haridaspur-Paradip broad-gauge rail link.

The consortium led by Rail Vikas Nigam (RVNL) with 48.43% shareholding will provide Rs 275 crore for the project, while the balance amount would be procured in the form of non-resource debt. 

The special purpose vehicle (SPV), RVNL's first venture, has been registered as Haridaspur-Paradip Railway Company (HPRC).
    
The other equity partners in the company are POSCO-India with 10%, Paradip Port Trust with 10%, Essel Mining and Industries with 10.91%, Rungta Mines with 10.91%, MSPL with 5.45%, Jindal Steel and Power with 1.82%, SAIL with 1.82% and Infrastructure Development Corporation of Orissa (IDCO) with 0.66%.
    
The RVNL has paid Rs 133.20 crore towards its stake in the company.     
"MoUs have been signed for production of 56.26 million tonne of steel and three million tonne of alumina per year. The state government has also entered into an understanding for generation of 15,000MW power," Chief Minister Naveen Patnaik said.
    
The  railway link will facilitate movement of traffic between Paradip Port and industrial belt of Duburi and beyond, he added.