Coal news and updates

Coal, rail ministries form JV with Odisha govt for coal evacuation

The Coal Ministry has signed a Memorandum of Understanding (MoU) with Ministry of Railways and Odisha for development of rail infrastructure for evacuation of coal through formation of a Joint Venture.

This joint venture company would undertake project development, financing and implementation of identified projects.

The two ministries and Odisha government would participate in the equity on its own or through its Public Sector Undertakings (PSUs) as nominated.

The share holding would follow this break-up. Coal Ministry or its nominated PSU 64%, Ministry of Railways or its nominated PSU 26% and Odisha government 10% stake.

The development of the corridors shall be implemented either through the proposed JV or through a separate project specific Joint Venture Companies (JVCs) /SPVs, as per Indian Railways standards.

Critical coal sidings will be fully funded by the respective coal companies.

The doubling/3rd line/traffic facility projects, which have a close interface with the existing railways network, shall be implemented by Indian Railways with possible funding by JV/JVCs through an appropriate mechanism as mutually agreed.

source: http://www.business-standard.com