The government plans to set up a SPV for funding
rail and road connectivity between Paradip port and Haridaspur in Orissa. The
SPV will be set up with the help of Rail Vikas Nigam Limited (RVNL), NHAI and
some major private mines.
The government will have one-third equity in the
SPV and with a large number of steel plants in the state, there is an increase
in demand for coking coal, therefore the route will facilitate ferrying of
related commodities.
The reason behind setting up the SPV is for
facilitating early completion of the 77 km stretch. This stretch is incidentally
part of the NHAI's port connectivity project.
The work on the stretch was awarded in February
2004 under the port connectivity project, however it is expected to be completed
by February 2007. Currently, the project is facing certain problems of shifting
of utilities.
The government has already set up various other
SPVs under the port connectivity project for all the major ports. However the
project on whole has been considerably delayed, as various state governments
have failed to pay their share of 30 per cent equity, even three years after the
project has been cleared by the Cabinet.
Though the port connectivity project, which comes
under the NHDP has no clear deadline, it is supposed to end by December 2007,
which was original deadline of the north south east west (NSEW) project. This
connectivity of various major ports all over the country are at various stages
of completion, and may not be able to meet the like its other counterparts. The
SPV formed for Paradip port is similar to other SPVs formed under the port
connectivity project.
With the involvement of RVNL in the SPV, will
lead to the possibility of upgrading railway tracks and wagon capacities. Also
with NHAI's involvement, the four laning of the road route will facilitate
smooth movement of coking coal to the steel industries close to Paradip port.