Indian Railways and JNPT sign MoU for rail project of Rs. 8,574 Cr

As per the Government, Railways, JNPT and state government of Maharashtra and Madhya Pradesh is going to sign a pact tomorrow for the execution and implementation of Rs. 8,574.79 Cr Indore and Manmad Railway line project. This project is going to lower down the logistic cost for all the cargo centres that were based in the North area including Gwalior, Agra, Lucknow and Kanpur along with Bhopal, Dhule, and Indore region involving the gateway ports of Mumbai and JNPT also. The shipping ministry also stated that a MoU will be signed tomorrow in between Ministry of Railways, Ministry of Shipping, Government of Madhya Pradesh and Government of Maharashtra for the successful execution of 362 km long rail project covering Indore and Manmad. As per this project, it will help in reducing the distance in between Mumbai and Pune to other key Central India locations by an approximate 171 km distance. Adding to this, the project passes via Mumbai and Delhi industrial based corridor nodes covering Nashik, Igatpuri, Pune, Dhule, Sinnar, Khed, Nardana and more.

In the initial period of 10 years of operations, this project is been evaluated and determined to end in cumulative net economic advantage of Rs. 15,000 Cr. The logistic benefits of the execution of the rail project involves availability of a shorter route or passageway for freight traffic as well as for the passengers starting right from, finishing off its journey, and crossing along through the region. The project will help in providing an alternate route that will connect the western and central railway lines on one end and on the other will lower down the congestion on the over utilized existing rail network.

In addition, it will assist in many other aspects like reduction in pollution, employment generation, vehicle operating costs and fuel consumption. For the traffic, feasibility and bankability of the project, IPRCL – Indian Port Rail Corporation Limited took the responsibility to carry out the project. Rail board has already given approval for the implementation of this project via IPRCL on the basis of Joint Venture SPV model. It has also been stated out that the proposed SPV would be acting in the form of a Joint Venture firm in between the nominated PSUs and Shipping Ministry covering the main promoter that is JNPT, Maharashtra government and its nominated entity and PSUs, Madhya Pradesh Government and its nominated entity and PSUs and others. As per the deadline and sources revealed, the project will be developed and completed within 6 years of time.