SECL Secures ₹1349 Crore Term Loan for Key Milestone in PM-Gatishakti Rail Corridor Project in Chhattisgarh
- Project will contribute to the Socio-Economic-Environmental advancement of the State
TFP Bureau,New Delhi; August 29, 2023: In a significant stride towards the realization of the PM GatiShakti Rail Corridor Projects in Chhattisgarh, a momentous event unfolded today as Rupee Term Loan agreements were formally signed between the Central Bank of India and the key stakeholders, including South Eastern Coalfields Ltd (SECL), Ircon International Limited (IRCON), CSIDC, and CERL. The loan amount of ₹1349 crore marks a crucial step forward in the development of Phase-II of Chhattisgarh East Railway Limited (CERL), underlining the project’s financial viability.
Chhattisgarh East Railway Limited (CERL), a subsidiary of South Eastern Coalfields Limited (SECL) with a 64% stake, in conjunction with Ircon International Limited (IRCON) holding a 26% stake, and Chhattisgarh State Industrial Development Corporation (CSIDC) with a 10% stake, has embarked on the ambitious task of constructing rail infrastructure within the state of Chhattisgarh. The project operates within the framework of the Joint Venture (JV) model of Public-Private Partnership (PPP) projects, under the Concession Agreement (CA) with the Ministry of Railways. The project has garnered recognition as a ‘Special Railway Project,’ indicating its paramount national importance.
The CERL project is structured in two phases. While Phase-I is largely operational, facilitating coal evacuation from Mand Raigarh Coalfields, Phase-II stretches over 62.50 kms, spanning from Dharamjaygarh to Korba. This segment establishes a critical rail linkage between CERL Phase-I and the CEWRL, which extends from Gevra Road to Pendra Road. The connection between these two phases presents an alternate rail route for coal transportation to the northern regions of the country. It also serves as a conduit from Kharsia to Pendra, enabling the efficient movement of coal from Mand-Raigarh Coalfields and Basundra Coalfields to powerhouses in the northern and western parts of India.
The estimated cost for the CERL Phase-II project stands at ₹1686.22 crore, structured with a funding ratio of 80:20 for Debt and Equity respectively. This translates to a debt component of ₹1349 crore and an equity infusion of ₹337.22 crore. Noteworthy is the commitment exhibited by the stakeholders, with an upfront investment of ₹273.81 crore to acquire the necessary land and secure forest clearances. With this momentum, the project’s completion is anticipated by March 2026.
On Monday a Rupee Term Loan signing ceremony, attended by key officials such as Shri S. K. Pal, Director Technical (Opns.) at SECL and Chairman (CERL), Shri G. Srinivasan, DF (SECL), Smt. Ragini Advani, DF (IRCON), Shri Y. K. Chaudhary, CTPM, SECR, ED (Coal) from the Ministry of Railways, Ravi Valluri, CEO (CERL), and other senior company representatives, marks a pivotal juncture in the project’s journey. It ushers in the prospect of disbursements from the bank and the commencement of construction activities by the JV Company. This development not only creates employment opportunities within the state but also augments economic growth.
The Rail Corridor Project in Chhattisgarh signifies more than just infrastructural progress. It is poised to contribute significantly to the socio-economic and environmental enhancement of the state. As one of the largest coal-producing subsidiaries of Coal India Limited, SECL’s involvement in the CERL Phase-II aligns with the broader vision outlined in the Gatishakti initiative, underscoring the importance of this major national infrastructure project.
