May 24 2005
Rail Vikas Nigam Limited Signs MOU for Haridaspur - Paradip New BG Rail Link
A Memorandum of Understanding was signed at Bhubaneshwar on May 24, 2005 between Rail Vikas Nigam Limited and Government of Orissa, along with four other strategic partners for financial participation and implementation of the 82 kms Haridaspur-Paradip broad gauge rail link in Orissa through a project specific Special Purpose Vehicle. This project is one of the port connectivity projects under the National Rail Vikas Yojana being implemented by RVNL. Rail Vikas Nigam Limited is a special purpose vehicle (SPV), which has been created to implement the bankable projects of National Rail Vikas Yojana. It is a public sector undertaking under the Ministry of Railways, Government of India.
Shri J.P. Shukla, IRSE, Managing Director, RVNL, signed the agreement on behalf of Rail Vikas Nigam Ltd., along with Principal Secretary, Commerce & Transport, Government of Orissa, who signed on behalf of the State Government of Orissa. Representatives of the strategic partners, which are Paradip Port Trust, Rungta Mines Ltd., Kolkata, Essel Mining & Industries Limited, Kolkata, and Jindal Steel & Power Limited, signed on behalf of their respective companies.
Shri Navin Patnaik, Hon’ble Chief Minister of Orissa, Shri Biswa Bhusan Harichandan, Hon’ble Minister for Industries, Shri Padamanav Behera, Hon’ble Minister for Steel & Mines, and Shri Jaynarayan Mishra, Hon’ble Minister for Commerce & Transport, as also Dr. Subas Pani, IAS, Chief Secretary to the Government of Orissa, and several senior state government officers were present on the occasion. Shri Navin Patnaik, Chief Minister of Orissa, said that the signing of this MOU would pave the way for rapid industrialization in the state.
Under the aegis of Rail Vikas Nigam Limited, it was decided to form a Special Purpose Vehicle to expedite completion of this BG Rail Link. The Special Purpose Vehicle shall be registered as a Company with an equity base of Rs.180 crores and a landed cost of Rs.442 crores, with the balance amount being financed through non-recourse debt. It is expected that this BG Rail Link shall be completed by 2008.
This BG Rail Link traverses through three districts of Orissa, namely Kendrapada, Jajpur and Jagatsinghpur, and thus, establishing a direct link between the iron-ore rich areas of Orissa to Paradip Port, thereby shortening the chargeable distance by about 335 kms., in comparison to the existing route via Kharagpur.
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