New Delhi: The government on Monday said that JNPT, railways and state governments of Madhya Pradesh and Maharashtra will enter into a pact on Tuesday for implementing Rs 8,574.79 crore Indore- Manmad Railway Line Project.
"An MoU will be signed tomorrow between JNPT- Ministry of Shipping, Ministry of Railways, Govt of Maharashtra and Govt of Madhya Pradesh for implementation of 362 km Indore- Manmad New Railway Line Project," the shipping ministry said in a statement.
The project will reduce the distance from Mumbai, Pune to key central India locations by 171 km.
"The project passes through the Delhi-Mumbai Industrial Corridor nodes Igatpuri, Nashik and Sinnar; Pune and Khed; and Dhule and Nardana," it said.
The project is estimated to result in cumulative net economic benefits of Rs 15,000 crore in the first 10 years of operations.
Its logistic advantages include providing a shorter route for passengers as well as the freight traffic originating from, terminating or crossing through the region.
The project will reduce the logistics cost for the cargo centres located in the north such as Lucknow, Agra, Gwalior and Kanpur belt as well as Indore Dhule Bhopal region to the gateway ports JNPT and Mumbai.
It will be an alternate route to the existing central and western railway lines and will reduce congestion on the over utilised existing railway network.
In addition, it will help in employment generation, reduction in pollution, fuel consumption and vehicle operating costs.
The Indian Port Rail Corporation Limited (IPRCL) carried out the feasibility, traffic and bankability for the project.
Railway Board approved the implementation of the project through IPRCL on Joint Venture SPV model.
"The proposed SPV would be in the form of a Joint Venture Company between Shipping ministry or its nominated PSUs including JNPT (which will be the main promoter),
The government of Maharashtra or its nominated PSUs/Entity, Government of Madhya Pradesh or its nominated PSUs/Entity, and others," it said.
The project will be constructed within six years, it added.
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Updated Date: Aug 28, 2018 11:28:31 IST