New Delhi [India], August 29 : South Eastern Coalfields Ltd (SECL) has reached a financial milestone in the Chhattisgarh East Railway Limited (CERL) Phase-II project, a component of the PM-Gatishakti Rail Corridor initiative.
This achievement comes in the form of a Rupee Term Loan agreement, valued at Rs 1,349 crores, secured from the Central Bank of India.
The loan marks a step toward the development of Phase II, promising to enhance rail infrastructure in the state of Chhattisgarh.
CERL is a subsidiary company of SECL, holding a 64 per cent stake and operates in a joint venture with Ircon International Limited (IRCON), which owns a 26 per cent stake and the Chhattisgarh State Industrial Development Corporation (CSIDC), representing the Government of Chhattisgarh, with a 10 per cent stake.
The primary goal of CERL is to construct essential rail infrastructure within Chhattisgarh.
The CERL Phase II project, extending over 62.50 kilometres from Dharamjaygarh to Korba, serves as a critical rail link connecting CERL Phase-I (Kharsia to Dharamjaygarh with a Spur line to Pelma) and CEWRL (Gevra Road to Pendra Road, Main Line of 135 kilometres).
This new rail route will facilitate the transportation of coal to the northern regions of India, offering a link from Kharsia to Pendra. This connection will enable the movement of surplus coal from Mand-Raigarh Coalfields and Basundra Coalfields to the Northern and Western Powerhouses of the country.
The estimated project cost for CERL Phase II is Rs 1,686.22 crores, structured with a funding ratio of 80:20 (Debt:Equity), comprising Rs1,349.00 crores of debt and Rs 337.22 crores of equity.
The committed promoters have already invested Rs 273.81 crores in the project, allowing the acquisition of necessary land and forest clearances. The project is scheduled for completion by March 2026.
During the Rupee Term Loan document execution ceremony, several figures, including SK Pal, Director Technical (Opns.), SECL and Chairman (CERL), G Srinivasan, DF (SECL), Ragini Advani, DF (IRCON), YK Chaudhary, CTPM, SECR, ED (Coal) from the Ministry of Railways, Ravi Valluri, CEO (CERL), and other senior officials of the company were present.
The achievement of this financial milestone is expected to trigger disbursements from the bank and pave the way for the commencement of construction activities by the JV Company.
This will, in turn, create employment opportunities within the state and contribute to Chhattisgarh's socio-economic and environmental advancement.
The Rail Corridor Project aligns with the objectives of the Gatishakti initiative, emphasizing the importance of critical national infrastructure projects.
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