Shareholder agreement signed for Haridaspur-Paradip rail link

Bhubaneswar, Oct 11 (UNI) Four Public Sector Undertakings, including the Rail Vikas Nigam Limited(RVNL) and five private companies today, signed a shareholders agreement for Rs 600 crore Haridaspur-Paradip broad gauge rail link in Orissa.

The shareholders' agreement was signed after the RVNL conducted a traffic appraisal study with Feedback Ventures Private Limited as its consultant and decided to form a special purpose vehicle to expedite the completion of the 82 kms rail link. It is considered to be one of the important port connectivity projects under the National Rail Vikas Yojana.

Besides, the RVNL, three other PSUs, who signed the agreement were Paradip Port Trust, Steel Authority of India Limited(SAIL) and the Industrial Development Corporation Limited(IDCOL) of Orissa government.

The five private partners- POSCO India, Jindal Steel Private Limited, Essel Mining and Industries Limited, Rungta Mines Limited and MSPL Limited have signed the shareholders agreement in presence of Chief Minister Naveen Patnaik, Transport and Commerce Minister Jayanarayan Mishra and RVNL Mananging Director D C Mitra.

Haridaspur Paradip Railway company limited is the special purpose vehicle with an equity base of Rs.275 crores of which the RVNL is holding a major share of 48.43 per cent amounting to Rs.133.20 crores.

The POSCO India, the Paradip Port Trust, Essel Mining&Industries Limited, the Rungta Mines Limited have contributed more than 10 per cent each of the total equity share for the project. The project would be completed by 2008.

Sources said about 19 million tonnes of traffic is expected to move per anum on this line which passed through the three districts establishing a direct link between the iron ore rich areas of Orissa to Paradip Port, shortening the chargeable distance by about 335 kms, in comparison to the existing route.

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