Ore-rich region of Chhattisgarh to get PPP rail link

Indian Railways, SAIL, NMDC and the state govt have signed an MoU for a 235-km broad-gauge line.

In a significant step towards strengthening its public-private partnership (PPP) initiative, the railway ministry today signed a memorandum of understanding (MoU) with Steel Authority of India Ltd (SAIL), National Minerals Development Corporation (NMDC) and Chhattisgarh for a 235-km broad-gauge line from Dalli Rajhara to Jagdalpur via Rowghat.

The move would help the steel industry as the line would pass through the state's iron ore-rich region and give an impetus to bulk transport of the ore.

The project will be constructed in two phases. The first is a 95-km stretch from Dalli Rajhara to Rowghat, while the second involves a 140-km line from Rowghat to Jagdalpur.

The cost of the project is Rs 968.60 crore. The cost of the phase-I (Rs 304-crore), which is scheduled to be over in five years, will be borne entirely by SAIL.

The phase-II will cost Rs 640 crore, of which Rs 376 crore (57 per cent) will be borne by the railways and Rs 141 crore (21 per cent) by SAIL.

The Chhattisgarh government will pay Rs 76 crore (12 per cent) and NMDC Rs 70 crore (10 per cent) of the cost. The process of land acquisition for the first phase has already begun.

Railway Minister Lalu Prasad said the step would bring about socio-economic development of backward areas of the Bastar region, which is predominantly inhabited by tribals. He said the new line would facilitate bulk transport of forest products, ores and minerals.

A similar MoU was signed between the agencies concerned in 1998 but the project could not take off then. Prasad said the issue was resolved at a special meeting convened by his ministry last month.

Forty-six road under-bridges, 16 road over-bridges, 42 major bridges, 303 minor bridges and a 460-metre-long tunnel would be constructed as part of the project.

"The new line will facilitate easy transportation of iron ore and steel in the country," said Railway Board Chairman KC Jena said

Steel Minister Ram Vilas Paswan, Chhattisgarh Chief Minister Raman Singh and Minister of State for Railways R Velu were present on the occasion.

The signatories to the agreement included KC Jena, chairman, Railway Board; Shivraj Singh, chief secretary, Chhattisgarh government; SK Roongta, chairman, SAIL; and Rana Som, chairman and MD, NMDC.