First rail line project under PPP in AP

Hyderabad, Oct 13 (UNI) For the first time in the history of Railways, the proposed 114-km new railway line from Obulavaripalle in Kadapa district to Krishnapatnam port would be laid under Public Private Partnership (PPP) at a cost of Rs 588 crore, an official said today.

Addressing the press after the Shareholders Agreement among the partners here, State Principal Secretary to Roads and Buildings T Chatterjee said the Railway Vikas Nigam Limited (RVNL) and Krishnapatnam Port Company would have 30 per cent stake each, while the Andhra Pradesh government would have 13 per cent and National Mineral Development Corporation (NMDC) 15 per cent share in the project. The remaining 12 per cent share would be alloted to a private company through bidding, he added.

Stating that the entire project would be completed by the end of 2010, he said under the first phase, 23-km line works from Venkatachalam to Krishnapatnam, would be completed by the end of December 2007.

Under the second phase, 92-km line from Venakatachalam to Obulavaripally, including construction of 7 km long tunnel would be completed within four years.

Mr Chattergy said the new railway line would relieve pressure on Chennai and Ennore for coal imports and iron ore exports. Parallel road at the cost of Rs 30 crore would also be laid along the railway line.

The shareholders agreement was signed by RVNL Director D C Mishra, NMDC Finance Director V K Jain, Krishnapatnam Port Ltd Director C V Rao and State Special Secretary to Ports D Mitra in the presence of the Chief Minister Y S Rajasekhara Reddy and Roads and Building Minister J Ramamohan Rao.

A Memorandum of Understanding (MoU) had been signed among the partners on November 22, 2005.

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