JNPT, Railways & states to sign MoU for Rs 8,574 cr rail project

The government today said that JNPT, Railways and state governments of Madhya Pradesh and Maharashtra will enter into a pact tomorrow for implementing Rs 8,574.79 crore Indore- Manmad Railway Line Project.

“An MoU will be signed tomorrow between JNPT- Ministry of Shipping, Ministry of Railways, Govt of Maharashtra and Govt of Madhya Pradesh for implementation of 362 km Indore- Manmad New Railway Line Project,” the shipping ministry said in a statement.

The project will reduce the distance from Mumbai, Pune to key central India locations by 171 km. “The project passes through the Delhi-Mumbai Industrial Corridor nodes Igatpuri, Nashik and Sinnar; Pune and Khed; and Dhule and Nardana,” it said.

The project is estimated to result in cumulative net economic benefits of Rs 15,000 crore in the first 10 years of operations. Its logistic advantages include providing a shorter route for passenger as well as the freight traffic originating from, terminating or crossing through the region.

The project will reduce the logistics cost for the cargo centres located in north such as Lucknow, Agra, Gwalior and Kanpur belt as well as Indore – Dhule – Bhopal region to the gateway ports JNPT and Mumbai.

It will be an alternate route to the existing central and western railway lines and will reduce congestion on the over utilised existing railway network.

In addition, it will help in employment generation, reduction in pollution, fuel consumption and vehicle operating costs. The Indian Port Rail Corporation Limited (IPRCL) carried out the feasibility, traffic and bankability for the project. Railway Board approved the implementation of the project through IPRCL on Joint Venture SPV model.

“The proposed SPV would be in the form of a Joint Venture Company between Shipping ministry or its nominated PSUs including JNPT (which will be the main promoter), Government of Maharashtra or its nominated PSUs/Entity, Government of Madhya Pradesh or its nominated PSUs/Entity, and others,” it said.

Source: Moneycontrol