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New broad gauge line between Gevra Road-Pendra Road approves by Union Cabinet



New Delhi, February 07, 2013: The Union Cabinet today approved a proposal to construct a new broad gauge line between Gevra Road and Pendra Road with a cost of Rs 838.02 crore.

The Cabinet Committee on Economic Affairs today approved the construction of the 121.70 km new broad gauge line between Gevra Road and Pendra Road at a cost of Rs.838.02 crore, official sources said here.

The new project would be funded through a Joint Venture consisting of IRCON International Ltd (a Railway PSU) and other stakeholders M/s South Eastern Coalfields Ltd and Government of Chhattisgarh, they added.

IRCON would spearhead the process of formation of Special Purpose Vehicle (SPV) with 26 per cent equity and Government of Chhattisgarh would transfer government land free of cost.

The state government would thus participate to the level of 10 per cent in equity, either through capitalisation of land or through cash contribution and SECL would take the balance equity, the officials said.

The project is likely to be completed in the next five years, during the 13th Plan period.

The rail link between Gevra Road and Pendra Road was necessitated in view of the tremendous increase in anticipated traffic and development activities in this area, officials said.

At present, the movement of coal traffic is being done through Gevra Road and Champa Branch line.

Considering the additional traffic generated for coal from Sendurgarh, Hasdeo Arrand, Dipka, Gevra and Korba coal fields of SECL, this additional rail link was required for smooth movement of coal, the officials said.

This rail link would also facilitate serving the coal needs of Western Uttar Pradesh, Delhi, Haryana and Punjab, they added.

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