Railway Ministry to take up connectivity projects worth 20k crore
New Delhi: The ministry of railways has decided to take up 21-port rail connectivity projects, under the government’s Sagarmala project, flagship programme of the Ministry of Shipping, for promoting port-led development, to strengthen evacuation network and boost the connectivity with the country’s ports.
Sagarmala project is extended along India's 14,500 km long coastline and the estimated cost has been fixed by the ministry at rupees 20,000 crore.
The project will be taken up by the Indian Port Rail Corporation limited along with the six other upcoming rail projects.
About the project:
- "The Ministry of Railways will be taking up 21 port-rail connectivity projects, at an estimated cost of more than Rs 20,000 crore, as identified under the port-connectivity enhancement objective of Sagarmala," a Shipping Ministry statement said.
- The ministry statement also stated that these projects will enhance port connectivity to the hinterland and help in reducing logistics costs and time for cargo movement making Indian trade more competitive.
- Many port-rail connectivity projects have been identified by IPRCL as part of National Perspective Plan, April 2016, under the Sagarmala programme, and it has already awarded three connectivity project for Vishakhapatnam and Chennai ports for faster evacuation of cargo along with 19 other projects in pipeline.
- The project will help in transportation of thermal coal from Mahanadi Coalfields Ltd (MCL) to various coastal power plants in southern India through coastal shipping.
- These projects are expected to generate annual logistics cost savings of around Rs 35,000 crore and provide boost to merchandise exports by USD 110 billion by 2025.
What officials said:
- According to the IPRCL officials the project is also expected to create at least one crore new employment opportunities.
- "More than 150 projects have been identified which will mobilise investment of more than Rs 4 lakh crore and generate approximately one crore new jobs, including 40 lakh direct jobs, over a period of 10 years," the statement said.