HYDERABAD: The Ministry of Railways has decided to construct the newly announced Manuguru-Ramagundam railway line under the Public-Private Partnership (PPP) mode at an estimated cost of `5,818.45 crore. The 207.8-km broad gauge line is expected to improve connectivity in remote tribal regions of Telangana while also boosting freight earnings from the Singareni coal belt.
The Public Private Partnership Appraisal Committee (PPPAC) under the Department of Economic Affairs, Ministry of Finance, has granted in-principle approval for execution of the project under the PPP model.
The project will be awarded to a private concessionaire for a period of 50 years, including the construction phase. The selected company will be the bidder seeking the lowest viability gap funding, capped at 40% of the project cost.
The Ministry of Railways has fixed a completion timeline of five years, including one year for land acquisition and four years for construction. Indian Railways will undertake land acquisition, secure necessary clearances, prepare the Detailed Project Report and operate train services. The concessionaire will be responsible for design, construction, financing and maintenance of the line.
Officials said freight earnings are expected to form the major source of revenue for the project. Coal and coke, chemical fertilisers, food grains, flour, pulses, cement, minerals and ores are expected to be the key commodities transported on the route.
As per the preliminary alignment, the railway line will pass through Gopalraopet in Bhadradri Kothagudem district, Tadvai and Medaram in Mulugu district, Bhupalpally, and Manthani in Peddapalli district, connecting several tribal villages and tourist locations.
Officials said the project would reduce the distance between Manuguru and Ramagundam by nearly 90 km. The new line is also expected to serve as an alternative route to the Nagpur-Vijayawada section of the New Delhi-Chennai Grand Trunk line.
Coal, freight traffic to drive revenue
Officials said freight earnings would be the main revenue source for the project. Coal, coke, fertilisers, food grains, flour, pulses, cement, minerals and ores are also expected to be transported on the route.