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MoU signed for new Indore-Manmad railway line project

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A memorandum of understanding (MoU) for implementation of the new 362 km Indore- Manmad railway line project was signed here on Tuesday between Jawaharlal Nehru Port Trust (JNPT), Ministry of Railways and the State Governments of Maharashtra and Madhya Pradesh.
 
Containers and other rail traffic from Indore and other Central Indian locations earlier had to follow a circuitous route through Vadodara and Surat to reach Mumbai, Pune and ports like JNPT, travelling a distance of 815 km. 
 
The new project will reduce the distance from Mumbai/Pune to key central India locations by 171 km, resulting in lower logistics costs, an official press release said.
 
This is especially significant as the new railway line will pass through the Delhi-Mumbai Industrial Corridor nodes of Igatpuri, Nashik and Sinnar; Pune and Khed; and Dhule and Nardana, it said.
 
The MoU was signed in the presence of  Minister of  Shipping, Road Transport & Highways Nitin Gadkari,  Railways Minister Piyush Goyal, Minister of State for Defence Subhash Bhamre, and Chief Ministers Shivraj Singh Chouhan (Madhya Pradesh) and Devendra Phadnavis (Maharashtra). 
 
The implementation of the project will be through the Indian Port Rail Corporation Limited (IPRCL) on Joint Venture  SPV model. A joint venture company will be formed between the Ministry of Shipping or its nominated PSUs/entity including JNPT (which will be the main promoter) with an equity share of 55%. The government of Maharashtra or its nominated PSUs/entity, Government of Madhya Pradesh or its nominated PSUs/entity, and others will have an equity share of 15% each.
 
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Speaking on the occasion, Mr. Gadkari hailed the signing of the MoU as a major step towards the development of backward areas of Madhya Pradesh and Maharashtra through which the new railway line will pass.
 
The project is estimated to result in cumulative net economic benefits of Rs 15,000 crore in the first ten years of operations. The logistics advantages of the project include providing a shorter route for the passenger as well as the freight traffic originating from / terminating at/or crossing through the region.
 
It will reduce the logistics cost for the cargo centres located in Northern India such as Lucknow, Agra, Gwalior and Kanpur belt as well as Indore – Dhule – Bhopal region to the gateway ports JNPT and Mumbai. It will provide an alternate route to the existing central and western railway lines and reduce congestion on the over utilized existing railway network.
 
The Minister pointed out that the project, to be completed within six years, will help in employment generation, reduction in pollution, fuel consumption and vehicle operating costs.
 
NNN
 

(Our News Desk can be contacted at desk@netindian.in)

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