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.