Coastal shipping of thermal coal to receive impetus under Sagarmala

July 07, 2016: To provide a boost to coastal shipping and impel port-led development, the state government of Odisha will form an alliance with the Ministry of Shipping. This is part of Sagarmala, which is the flagship programme of the ministry.

For taking ahead the ‘port-led development’ agenda under Sagarmala, the flagship programme of the ministry. The state government has confirmed 10 percent equity participation in the Special Purpose Venture (SPV) of Indian Port Rail Corporation (IPRCL) that will be formed for development of a heavy haul rail corridor from Salegaon to Paradip port. This initiative will strengthen supply-side connects from mine to port and will boost coastal movement of 140 MTPA of coal, as envisioned in Sagarmala National Perspective Plan. The rail link will serve as the last mile connectivity to transport bulk cargo of thermal coal from the Mahanadi Coalfields (MCL), via coastal shipping at Paradip, to power plants in coastal regions of southern states. It will also serve the four major industrial clusters- Jharsuguda-Sambalpur; Angul-Talcher-Dhenkanal; Kalinganagar Steel Hub; and port based industrial area of Paradip. Including the 3rd and 4th line development between Budhapank and Salegaon by Indian Railways, the project estimates an investment of Rs 4500 crore. The project will be executed by the SPV between Indian Port Rail Corporation (IPRCL), RITES, Paradip Port Trust, the state government of Odisha and Mahanadi Coalfields.