Project will develop under the JV model of Rail Participative Policy
JSW Jaigarh Port Ltd announced the signing of the concession agreement with Ministry of Railways through Konkan Railway Corporation Ltd (KRCL) in the presence of Devendra Fadnavis, Chief Minister of Maharashtra and Suresh Prabhu, Minister of Railways, for developing 33.7 km of a new railway line, connecting Jaigarh Port to the new Digni station on the Konkan Rail network. Jaigarh Port emerged as a successful bidder, following a competitive bidding process to develop this project under the PPP model for the development, operation and maintenance of the rail system.
The project, which has been conceptualised by KRCL under the joint venture (JV) model of Rail Participative Policy promulgated by MoR, will play a critical role. The JV company is formed as Jaigarh Digni Rail Ltd (JDRL), in which Jaigarh port, KRCL and Maharashtra Maritime Board (MMB) are the shareholders. The estimated cost of the project is Rs 771 crore, which is being funded through a combination of equity and debt. The concession period is about 30 years. The alignment for this new rail line passes through the difficult terrain of Sahyadri mountains, which would necessitate construction of about 18 km long tunnels. The estimated time of completion is 30 months and the rail corridor is expected to handle around 12 mtpa cargo to and from JSW.
Sajjan Jindal, CMD, JSW Group, said, ¨The project will usher a new era of development for the region and provide impetus to the economic activities with the new rail link. The Jaigarh Port will get a major boost with the signing of the concession agreement for Jaigarh Digni new rail line. We are sure this will bring a positive change in the socio-economic growth of the region by creating more job and entrepreneurship avenues.¨