Common rail corridor for Rampia coal block


    rail corridor

    OST Business Bureau

    Bhubaneswar, Oct 8:

    The state government has decided to develop a common railway corridor for evacuation of coal in the Rampia coal block.

    The decision was taken at a high level meeting held under the chairmanship of chief secretary Jugal Kishore Mohapatra yesterday.

    Mohapatra directed officials to identify the alignment of the line in such a manner that displacement of human habitations and diversion of forest land is minimal. He asked IDCO and MCL to take the lead to form a joint venture company for implementation of the project.

    Rampia Coal Mines & Energy Private Limited (RCMEPL) has been allocated two coal blocks located in the Ib valley area of Sundargarh district. It is a joint venture company consisting of 6 industrial firms, namely; Lanco Group Ltd., Sterlite Energy Ltd., GMR Energy Ltd, Arcellor Mittal India Ltd, Navabharat Power Ltd and Reliance Infrastructure Ltd formed for developing the Rampia coal mines.

    According to sources, the total reserve in these mines is around 645 MT, which can cater to the need of Sterlite’s 1000 MW IPP at Jharsuguda, GMR’s 1000 MW IPP at Dhenkanal, Arcellor’s 750 MW CPP at Keonjhar, Lanco’s 1000 MW IPP in Dhenkanal and Reliance’s 1000 MW IPP in Jharsuguda. MCL also has major coal blocks in this area.

    However, Mittal has, in the meantime, scrapped both its steel project as well as the power project.

    For evacuation of coal from these mines, it has been decided that a common railway corridor will be developed with equity participation from Government of Odisha and MCL. It has been proposed that IDCO and MCL will start the company in which other partners may join later on. Shares will be held by IDCO, MCL and other user companies.

    The common corridor will reduce the land requirement and forest land diversion problems. MCL has been nominated as the lead member to formulate common alignment plan of the corridor in consultation with other partners.