India is poised to start building an 880-billion rupee ($16 billion) rail network, its biggest since independence, as early as September to add capacity and cut the time to move cargo including coal.
State-owned Dedicated Freight Corridor Corp. of India Ltd. has bought about 75 percent of the 10,840 hectares (26,786 acres) of land needed for the 3,373-kilometer (2,096 miles) link and expects to acquire the rest by March, Anil Kumar Saxena, spokesman at the Ministry of Railways, said in an interview in New Delhi. The railways’ coal-carrying capacity will increase eightfold after the project is completed, he said.
The freight network linking the biggest coal producing region with generators in north India may cut costs for plants in a nation where half of the power capacity runs on the fuel. NTPC Ltd. (NTPC), Lanco (LANCI) Infratech Ltd. and rivals have not been able to run some of their plants at capacity because coal supply fell short. Transportation bottlenecks in Asia’s second-largest landmass have added to their woes, according to Dipesh Dipu, director at Deloitte Touche Tohmatsu Ltd. in India.
“The existing railway infrastructure is far from adequate and in many cases plants do not get coal despite stocks at the mine,” said R.S. Sharma, managing director of Jindal Power Ltd., which has a capacity to generate 1,000 megawatts of electricity. “As the power capacity increases, there will be need to haul more and more coal.”
The dedicated freight network will comprise two corridors, according to the company. One will run from Ludhiana, in northern Punjab state, to Dankuni on the eastern coast, while the other will link New Delhi with Mumbai on the western coast. The two will intersect at Dadri, near the capital.
‘Time Guarantees’
DFCC will build a 66 kilometer stretch between Son Nagar and Mughalsarai, both in eastern India, by December next year to demonstrate progress, Saxena said. Work on a 350-kilometer portion between Kanpur and Khurja, also in the east, will be awarded as early as September, he said.
The project involves laying 4,200 kilometers of new feeder lines, Saxena said. These feeder lines will include routes from coal mines to Son Nagar, in Bihar state, and Gomoh, in Jharkhand state, linking at least 15 major power plants along the corridor, he said.
The capacity of railways to carry coal will rise to 400 million tons a year from 50 million tons, Saxena said.
“Travel times will be cut by half,” said Saxena. “We can also enter into time guarantees for movement of coal to power houses, and introduce new efficient wagons, which can’t be done today because of limitations of existing lines.”
About 80 percent of India’s coal reserves are in the five eastern states of Bihar, Chhattisgarh, Jharkhand, Orissa and West Bengal, according the Ministry of Coal.
Power Deficit
NTPC, Asia’s biggest electricity producer by value, said last month that it has scaled back plans to add coal-fired capacity by 42 percent because of fuel shortage. Lanco has 4,988 megawatts of capacity under operation, according to its website and is adding plants in the area that will serviced by the rail network .
Prime Minister Manmohan Singh’s government aims to create 76 gigawatts of generation capacity in the next five years to bridge an 8.6 percent peak-demand shortfall in the quarter ended June and revive economic growth from the slowest pace in nine years. Removing fuel supply constraints will be important, according to Deloitte’s Dipu.
Last year, about 45 million tons of coal was held up in mines because of lack of transportation, Dipu said.
Many Indian mines are operating at one-third of capacity as the rail system can’t move more cargo, Alok Perti, former secretary at the coal ministry had said Jan. 31. State- controlled Coal India Ltd. (COAL), the world’s biggest producer, has been seeking construction of at least four railway links for as many as six years, which it has said will ease congestion and enable a 66 percent increase in output.
Faster Trains
The dedicated corridor, targeted to be completed by March 2017, will help almost quadruple freight train speeds to 70 kilometers an hour and carry 55 percent of the railways’ cargo traffic by revenue, according to the DFCC.
The rail project will be a game changer with potential to introduce predictability of cargo delivery, Kotak Institutional Equities Research said in a note to clients in May.
“It will imply a meaningful addition to railways’ capacity and to infrastructure overall,” Lokesh Garg, an analyst with Mumbai-based Kotak, said by phone on July 6.
DFCC will seek the government’s approval to raise the project cost to about 880 billion rupees from 770 billion rupees, after making additions to include more bridges and more electrified stretches.
Japan International Cooperation Agency will fund 80 percent of the link in the west coast, while a stretch on the eastern line will be funded by the World Bank.
Private Participation
A 530-kilometer section connecting Son Nagar and Dankuni, both in eastern India, will be awarded to private companies, according to DFCC website.
Larsen & Toubro Ltd. (LT), India’s biggest engineering company, GMR Group, Tata Projects Ltd. and IRCON International Ltd., a state-owned builder, are among potential bidders DFCC is in talks with, Saxena said.
The biggest challenge the project will have to surmount is the acquisition of remainder portion of the land required.
“Land acquisition has to be done in a very sensitive manner,” Saxena said. “That’s what we’ve done and that’s why we’ve had the least problem.”
The link, when completed, will carry 55 percent of the railways’ freight traffic by revenue, according to DFCC. Coal accounts for about 45 percent of goods carried by Indian Railways, the oldest network in Asia.
“There’s a limitation to moving coal on trucks,” said Deloitte’s Dipu. “This development would have a huge impact on the way coal is moved.”
To contact the reporter on this story: Karthikeyan Sundaram in New Delhi at
kmeenakshisu@bloomberg.net
To contact the editor responsible for this story: Vipin Nair at
vnair12@bloomberg.net
Coal-Starved Power Utilities to Get Freight Link Succor - Businessweek
0 million loan agreed for Indian rail improvements - Rail News from rail.co
$150 million loan agreed for Indian rail improvements
11 Jul 2012 ⋅ by Jagdish-Kumar ⋅ in Rail Projects ⋅ 0 Comments
Asian Development Bank (ADB) has signed a deal with the Indian government agreeing a $150 million loan for the first tranche of the Railway Sector Investment Program.
The investment will see more than 840km of rail track routes doubled, 640km of track electrified and the installation of a new signalling system.
The deal was signed by Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, Satish Agnihotri, managing director, Rail Vikas Nigam Limited, and Hun Kim, country director for India, ADB.
The total cost of the Railway Sector Investment Program is $1,144.6 million, out of which ADB will provide $500 million loan assistance in four tranches and the Indian government will fund $644.6 million.
Rajamony said: “Although railways make up a significant part of India’s transport sector, constraints on high density railway routes present a chronic challenge. This program should improve energy efficiency, safety, reliability, affordability, and environmental sustainability along key railway routes with heavy traffic.”
Hun Kim said: “Our goal is to get people and goods moving more quickly and easily throughout India.
“Better railways not only help promote environmentally sustainable growth, they build better links between states and open opportunities to more people.”
ADB will also provide program linked technical assistance worth $300,000 to promote sustainable transport modes by monitoring carbon emission reductions from shifting bulk goods from road to rail. It will also support accounting reforms to improve operational and financial efficiency at Indian Railways.
Indian railways is going green, solar friendly
MYSORE: Indian railways is going green and solar-friendly.
Railway minister of state K H Muniyappa, after flagging off three train services from Mysore, said as part of their green initiative, Indian Railways will be providing bio toilets in as many as 2500 passenger coaches and over 1000 manned level crossing across India will be lit with solar energy lamps in this fiscal year.
Moreover, the railways will be filling the backlog of SC/ST/OBC categories by recruiting over one lakh employees in the year. They will also put in place integrated security system in 202 selected railway stations and will extend escort facilities by RPF/GRP personnel to another 3500 trains.
Railways have embarked upon several key infrastructure projects in the state on cost sharing basis to achieve the twin objective of connectivity to hinterland and economic growth of backward areas. The minister appreciated Mysore division of SWR for focusing on upgrading passenger amenities.
He said Indian railways is on a mission to build infrastructure and it has proposed for laying of 725 km new lines with estimation at Rs 6872 crore, 700 kms track doubling works at Rs 3393 crore, 800 kms gauge conversion at Rs 1950 crore and over 1100 kms of electrification Rs 828 crore.
Indian railways is going green, solar friendly - Times Of India