Posted By Tushar Mehta
Post Date: 24/12/2015
The Ministry of Railways signed a Memorandum of Understanding (MoU) with Coal India Limited for procurement of 2000 wagons (33 rakes) in the first shipment.
The accord was signed in the presence of Union Minister for Railways, Suresh Prabhu, Union Minister of State (Independent Charge) Coal, Power and New & Renewable Energy, Piyush Goyal, Union MoS for Railways Manoj Sinha. U.C. Joshi, Executive Director Freight Marketing representing Ministry of Railways and T.K. Sinha, General Manager, Project Monitoring Division as a rep of Coal India Limited affirmed the MoU.
Addressing the gathering, Suresh Prabhu said that this is a path-breaking agreement which will result inquick supply of wagons for coal loading in dedicated corridors. Prabhu informed that the initial investment of Rs. 500 crore will lead to a prospective investment of Rs. 5000 crore. Dubbing coal as the mainstay of Railways, the Minister informed that the two-third of its revenue comes from the coal.
Piyush Goyal expressed that the MoU will aid in fulfilling the target of 1 billion tonnes expressed by Coal India. Acknowledging Ministry of Coal, the Minister said that there is no single power plant in the country today that falls in critical category which has been possible only because of the support from the Ministry of Railways. He defined the MoU as the first step in large partnership with the Ministry of Railways to serve people of India.
The venture will benefit the economy as a whole and the Railways, the coal sector and power sector in particular. The remarkable part of this strategic partnership is that the wagons will be procured by Indian Railways on behalf of CIL. These wagons will lead to an extra carriage of 8-10 tons per wagon as compared to the conventional wagons of Indian Railways.
Initially, the rakes will be introduced and run in the 2 main coal loading Zones of the IR viz. South East Central coal sector and East Coast circuit. These rakes will be inducted in circuits for transporting coal from MCL Talcher & IB area and SECL to Paradip/Dharma ports, Vishakhapatnam area and the powerhouses of Nagpur/Raipur region.