Oct 16 2006
SHAREHOLDERS AGREEMENT, KRCL Obulavaripalle-Krishnapatnam Port New Railway Line
The
Shareholders Agreement for Krishnapatnam Railway Company Limited was signed on
October 13, 2006 between Rail Vikas Nigam Limited, Government of Andhra Pradesh,
Krishnapatnam Port Company Limited and National Mineral Development Corporation
for creation of a Special Purpose Vehicle for implementation of
Obulavaripalle-Krishnapatnam New Railway Line Project in Andhra Pradesh.
The
Obulavaripalle-Krishnapatnam New Broad Gauge Railway Line project is one of the
bankable port connectivity projects under the National Rail Vikas Yojana (NRVY),
which has been short-listed for further development in Public Private
Partnership (PPP) mode by Rail Vikas Nigam Limited (RVNL). The 113 Km project
line traverses through Obulavaripalle mandal of Kadapa district and four mandals,
i.e. Rapuru, Podalakuri, Venkatachalam and Muttukuru of Nellore district of
Andhra Pradesh. The alignment takes off from Obulavaripalle, which is an
existing station on Gooty – Renigunta section of Guntakal division of South
Central Railway. A stretch of 15 Kms between Obulavaripalle-Nethivaripalle,
passes through isolated hills and plain land. Another stretch of 19.53 Kms
between Nethivaripalle to Vellikallu passes through the ghat section, where the
alignment crosses the Eastern ghats over Rapur-Vellikonda range. The main
rationale of the project is to give rail connectivity to the gateway for iron
ore projects in the Hospet – Bellary belt from Krishnapatnam port. The new line
significantly reduces the distance for iron ore exports vis-à-vis Chennai port
which in any case has taken policy decision to stop handling dirty cargo latest
from 2008.
The
total landed project cost of the project with electric traction is estimated at
Rs.588 crores. It includes the hard project cost of Rs 470 cr, escalation in
cost during construction and contingency as Rs 67 cr and IDC of Rs 51 cr.
The project IRR is 13.05%.
The Special Purpose Vehicle (SPV) has been formed with the following partners:
-
Rail
Vikas Nigam Limited
-
Government of Andhra Pradesh
-
Krishnapatnam Port Company Limited
-
National Mineral Development Corporation
The
project would be funded through a debt-equity ratio of 1:1. Thus, the project
shall be funded in the following manner:
Rs.270
crores shall be raised through equity.
Viability gap funding of Rs.50 crores
Balance
of the project cost shall be funded through debt.
The
proposed shareholding of the parties shall be as under:
i.Rail Vikas Nigam Limited : 30%
ii.Government of Andhra Pradesh & its State Govt Agencies: 13%
iii.
Krishnapatnam Port Company Limited : 30%
iv.
National Mineral Development Corporation : 27%
Distance Analysis
|
BELLARY |
KRPT |
ENNRE |
MRMGO |
MNGLR |
|
ROUTE KM |
425 |
670 |
450 |
535 |
|
NET SAVINGS per MMT in Rs. Crore |
- |
18 |
- |
8 |
Project Traffic
In the first year of operation it is expected that6 mt of
iron ore, 2 mt of coal and 0.6 mt of Barytes and other commodities will move on
this line.
Phasing of construction
The project will be completed in 2 phases. The first phase
will provide connectivity between Venkatachalam and Krishnapatnam and the second
phase will complete the project.
The
Shareholders Agreement for Krishnapatnam Railway Company Limited was signed on
October 13, 2006 between Rail Vikas Nigam Limited, Government of Andhra Pradesh,
Krishnapatnam Port Company Limited and National Mineral Development Corporation
for creation of a Special Purpose Vehicle for implementation of
Obulavaripalle-Krishnapatnam New Railway Line Project in Andhra Pradesh.
The
Obulavaripalle-Krishnapatnam New Broad Gauge Railway Line project is one of the
bankable port connectivity projects under the National Rail Vikas Yojana (NRVY),
which has been short-listed for further development in Public Private
Partnership (PPP) mode by Rail Vikas Nigam Limited (RVNL). The 113 Km project
line traverses through Obulavaripalle mandal of Kadapa district and four mandals,
i.e. Rapuru, Podalakuri, Venkatachalam and Muttukuru of Nellore district of
Andhra Pradesh. The alignment takes off from Obulavaripalle, which is an
existing station on Gooty – Renigunta section of Guntakal division of South
Central Railway. A stretch of 15 Kms between Obulavaripalle-Nethivaripalle,
passes through isolated hills and plain land. Another stretch of 19.53 Kms
between Nethivaripalle to Vellikallu passes through the ghat section, where the
alignment crosses the Eastern ghats over Rapur-Vellikonda range. The main
rationale of the project is to give rail connectivity to the gateway for iron
ore projects in the Hospet – Bellary belt from Krishnapatnam port. The new line
significantly reduces the distance for iron ore exports vis-à-vis Chennai port
which in any case has taken policy decision to stop handling dirty cargo latest
from 2008.
The
total landed project cost of the project with electric traction is estimated at
Rs.588 crores. It includes the hard project cost of Rs 470 cr, escalation in
cost during construction and contingency as Rs 67 cr and IDC of Rs 51 cr.
The project IRR is 13.05%.
The Special Purpose Vehicle (SPV) has been formed with the following partners:
-
Rail
Vikas Nigam Limited
-
Government of Andhra Pradesh
-
Krishnapatnam Port Company Limited
-
National Mineral Development Corporation
The
project would be funded through a debt-equity ratio of 1:1. Thus, the project
shall be funded in the following manner:
Rs.270
crores shall be raised through equity.
Viability gap funding of Rs.50 crores
Balance
of the project cost shall be funded through debt.
The
proposed shareholding of the parties shall be as under:
i.Rail Vikas Nigam Limited : 30%
ii.Government of Andhra Pradesh & its State Govt Agencies: 13%
iii.
Krishnapatnam Port Company Limited : 30%
iv.
National Mineral Development Corporation : 27%
Distance Analysis
|
BELLARY |
KRPT |
ENNRE |
MRMGO |
MNGLR |
|
ROUTE KM |
425 |
670 |
450 |
535 |
|
NET SAVINGS per MMT in Rs. Crore |
- |
18 |
- |
8 |
Project Traffic
In the first year of operation it is expected that6 mt of
iron ore, 2 mt of coal and 0.6 mt of Barytes and other commodities will move on
this line.
Phasing of construction
The project will be completed in 2 phases. The first phase
will provide connectivity between Venkatachalam and Krishnapatnam and the second
phase will complete the project.
The
Shareholders Agreement for Krishnapatnam Railway Company Limited was signed on
October 13, 2006 between Rail Vikas Nigam Limited, Government of Andhra Pradesh,
Krishnapatnam Port Company Limited and National Mineral Development Corporation
for creation of a Special Purpose Vehicle for implementation of
Obulavaripalle-Krishnapatnam New Railway Line Project in Andhra Pradesh.
The
Obulavaripalle-Krishnapatnam New Broad Gauge Railway Line project is one of the
bankable port connectivity projects under the National Rail Vikas Yojana (NRVY),
which has been short-listed for further development in Public Private
Partnership (PPP) mode by Rail Vikas Nigam Limited (RVNL). The 113 Km project
line traverses through Obulavaripalle mandal of Kadapa district and four mandals,
i.e. Rapuru, Podalakuri, Venkatachalam and Muttukuru of Nellore district of
Andhra Pradesh. The alignment takes off from Obulavaripalle, which is an
existing station on Gooty – Renigunta section of Guntakal division of South
Central Railway. A stretch of 15 Kms between Obulavaripalle-Nethivaripalle,
passes through isolated hills and plain land. Another stretch of 19.53 Kms
between Nethivaripalle to Vellikallu passes through the ghat section, where the
alignment crosses the Eastern ghats over Rapur-Vellikonda range. The main
rationale of the project is to give rail connectivity to the gateway for iron
ore projects in the Hospet – Bellary belt from Krishnapatnam port. The new line
significantly reduces the distance for iron ore exports vis-à-vis Chennai port
which in any case has taken policy decision to stop handling dirty cargo latest
from 2008.
The
total landed project cost of the project with electric traction is estimated at
Rs.588 crores. It includes the hard project cost of Rs 470 cr, escalation in
cost during construction and contingency as Rs 67 cr and IDC of Rs 51 cr.
The project IRR is 13.05%.
The Special Purpose Vehicle (SPV) has been formed with the following partners:
-
Rail
Vikas Nigam Limited
-
Government of Andhra Pradesh
-
Krishnapatnam Port Company Limited
-
National Mineral Development Corporation
The
project would be funded through a debt-equity ratio of 1:1. Thus, the project
shall be funded in the following manner:
Rs.270
crores shall be raised through equity.
Viability gap funding of Rs.50 crores
Balance
of the project cost shall be funded through debt.
The
proposed shareholding of the parties shall be as under:
i.Rail Vikas Nigam Limited : 30%
ii.Government of Andhra Pradesh & its State Govt Agencies: 13%
iii.
Krishnapatnam Port Company Limited : 30%
iv.
National Mineral Development Corporation : 27%
Distance Analysis
|
BELLARY |
KRPT |
ENNRE |
MRMGO |
MNGLR |
|
ROUTE KM |
425 |
670 |
450 |
535 |
|
NET SAVINGS per MMT in Rs. Crore |
- |
18 |
- |
8 |
Project Traffic
In the first year of operation it is expected that6 mt of
iron ore, 2 mt of coal and 0.6 mt of Barytes and other commodities will move on
this line.
Phasing of construction
The project will be completed in 2 phases. The first phase
will provide connectivity between Venkatachalam and Krishnapatnam and the second
phase will complete the project.
| 
