Delhi: In an unprecedented move the Indian subsidiary
of the world's third largest third largest steel maker,
Posco, today signed a shareholders agreement with Rail
Vikas Nigam Limited (RVNL) to participate in a special
purpose vehicle (SPV) for the Haridaspur-Paradeep railway
line in Orissa.
will build a new 82-km broad gauge rail link between Paradeep
port and Haridaspur, which is a virtual extension of the
iron ore belts of Bansapani-Tomka where Posco-India's
captive mines will be located.
SPV has been formulated by RVNL to operate the rail line
through a public-private partnership on build-operate-transfer
basis for the concession period.
India has acquired a 10-per cent equity stake at an investment
of Rs27.5 crore and will have one director on the board
of the SPV. The railway project envisages a total
capital expenditure of Rs598 crore.
to Posco India, this infrastructure will prove beneficial
for the entire steel sector in Orrisa. This will help
to secure assured and competitive rail transportation
for iron ores between the mines and the plants. This new
rail link will reduce the distance from the existing Haridaspur-Cuttack-Paradeep
line by 41km.
has made a guaranteed commitment of 6.48MPTA traffic in
the first phase.
says that a 12-MPTA capacity integrated steel plant requires
diverse raw materials like iron ore, coal, limestone and
various auxiliary materials and estimates the tonnage
of raw material, finished steel products and slag movement
by rail to be 9 MPTA during the first phase 19 MPTA in
the second phase and 30 MTPA in third phase.
on the occasion, Soung-Sik-Cho, CMD, Posco-India said,
"Participation in the SPV is yet another step towards
to support the steel sector on a long term perspective.
We are very happy being a part in the emergence of Orissa
as the steel hub of the world in the coming days."