BHUBANESWAR: The State Government on Monday signed a memorandum of understanding (MoU) with Ministry of Coal and Ministry of Railways for development of rail infrastructure to evacuate coal through joint venture in New Delhi.
Chief Resident Commissioner of Odisha Government Sunil Kumar Bhargav, Additional Secretary in the Coal Ministry A K Dubey and Advisor (Infrastructure) Railway Board Girish Pillai signed the MoU.
The MoU was signed in the presence of Railways Minister Suresh Prabhu, Minister of State for Power, Coal and New and Renewable Energy Piyush Goyal, Minister of State for Railways Manoj Sinha and Minister of State for Commerce and Transport Ramesh Chandra Majhi.
As per the agreement, development of coal corridors will be implemented either through the proposed joint venture (JV) or through separate project specific special purpose vehicles (SPVs).
Projects, which were identified for development, financing and implementation, include 174 km Sambalpur-Talcher doubling, doubling of 182 km Sambalpur-Titlagarh rail line, Raipur-Titlagarh (203 km) doubling, Champa-Jharsuguda third line (165 km) and Brundamal-Jharsuguda flyover.
Critical coal sidings will be fully funded by the respective coal companies. The doubling/3rd line/traffic facility projects, which have a close interface with the existing railway network, will be implemented by Indian Railways with possible funding by the proposed JVs through an appropriate mechanism as mutually agreed, the MoU stated.
In the proposed JV companies (JVCs), MCL will have 64 per cent stake while Indian Railways and the State Government will have a share of 26 per cent and 10 per cent respectively.
The project specific JVCs will further explore participation of private investors, project promoters and other stakeholders, including State governments in the project including equity.
The JV will have an authorised share capital of `1,000 crore with initial paid-up capital of `50 crore.
Acquisition of land required for the projects will be done by the JVCs at their own cost. The JVCs will be responsible for payment of compensation for land to be acquired and also implementation of rehabilitation and resettlement of the affected people as per the Rehabilitation Policy of the State Government.
However, for doubling of line or expansion of existing rail network, land, if required, will be acquired by Railways at its cost, the agreement said.
The State Government will facilitate in completing the process of land acquisition and environmental and forest clearances for the projects as required.
The construction work of railway lines will be undertaken only after the process of land acquisition and statutory clearances is completed and financial closure is achieved.
Odisha Government will ensure sustainable development of all projects being implemented in the State, Majhi told reporters after the signing of the MoU.