The state steel & mines department has asked the mining company under it, Odisha Mining Corporation (OMC), to take a call on picking up nine per cent stake in the special purpose vehicle formed to implement Rs 400-crore Angul-Duburi-Sukinda Road rail corridor at the earliest.
"I would request you to kindly place the matter before the board of directors of OMC urgently and communicate its decision to this department for further action”, G C Sethy, joint secretary (steel & mines), wrote to Saswat Mishra, chairman and managing director of OMC.
Rail Vikas Nigam Ltd (RVNL) has the largest shareholding in the SPV with a share of 45 per cent. Two industrial players- Jindal Steel & Power Ltd (JSPL) and Bhusan Steel Ltd hold 25 per cent and 20 per cent stake respectively.
The balance 10 per cent stake is owned by the Odisha government through its two PSUs- Industrial Infrastructure Development Corporation of Odisha (Idco) and OMC. While Idco has already finalized its decision to have one per cent equity in the SPV, OMC is yet to decide on the matter.
The SPV has been formed for Angul-Duburi-Sukinda Road new broad gauge rail link project. The project is considered to be extremely crucial as it links three important industrial hubs.
The contribution of one per cent equity to the SPV has been duly sanctioned in favour of Idco by the State Level Export Promotion Committee. Idco has also called for suitable amendment in the memorandum and article of association as well as the shareholders' agreement of the SPV after which the funds can be released by the corporation.
However, the non-confirmation of equity participation by OMC was hampering the availability of loan and implementation of the project.
