Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

07-February-2013 15:18 IST

The Cabinet Committee on Economic Affairs today approved the construction of a new broad gauge line between Raigarh (Mand Colliery) to Bhupdeopur Railway Station of length of 63 km at a cost of Rs.379.08 crore to be funded through a Joint Venture (JV) consisting of IRCON International Ltd. (a Railway PSU) and other stakeholders - M/s. South Eastern Coalfields Ltd.(SECL) and Government of Chhattisgarh. IRCON will spearhead the process of formation of a Special Purpose Vehicle (SPV) with 26 percent equity and the Government of Chhattisgarh will transfer Government land free of cost. The Government of Chhattisgarh will thus participate to the level of 10 percent in equity, either through capitalization of land or through cash contribution, and SECL will take the balance equity.

The project is likely to be completed in the next five years during the 13th Plan period.

The Mand-Raigarh coal belt is a virgin coal field with reserves of mostly power grade coal and is strategically located to bridge the gap between demand and supply of Western India. The total geological reserve of the Mand-Raigarh coal field is estimated at around 16,000 million tonnes. Thus, there is huge potential of coal reserves amenable for open cast mining and the area identified is considered a future prospect of sustained growth. At present, the coal field is connected by road and with the projected growth expected by the end of the 12th Plan period, it would not be possible to cater to bulk transportation by road only. Keeping this growth potential in mind, rail connectivity is essentially required for this coal belt. Therefore, this new broad gauge link between Raigarh (Mand Colliery) to Bhupdeopur Railway station on the Howrah-Mumbai Main Line is being proposed, to cope up with the demand of additional traffic generated by M/s. SECL.

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SC/SM

Infrastructure joint venture for new rail link to connect Mand Raigarh coal belt, led by IRCON with state equity participation. Cabinet approval authorizes a 63 km broad gauge rail link between Raigarh (Mand Colliery) and Bhupdeopur to serve the Mand Raigarh coal belt. Funding is via a Joint Venture Special Purpose Vehicle led by IRCON with 26% equity; the Government of Chhattisgarh will provide land and participate to the level of 10% equity (by land capitalization or cash); SECL will take the remaining equity. The project targets bulk rail connectivity to the Howrah-Mumbai main line and is to be completed within five years during the planning period.