August 28, 2008

POSCO to part fund Haridaspur Paradip railway project

SNS reported that the much crucial Haridaspur to Paradip railway project, which has been plagued by meager allocation of funds every year, now has a ray of hope, from the industries expressing willingness to cooperate. The big names in industrial circles have come forward to extend support for early completion of the project, with POSCO alone assuring INR 27 crore.

Mr Sasank Patnaik official at POSCO said that "While half of the assured sum INR 13.50 crore was given to the union railway ministry recently, the second half would be provided as soon as possible."

Apart from POSCO, TATA, ArcelorMittal, SAIL, Jindal, Paradip Port Trust and four other big biz players have agreed to help the expedition of the project.

Sources said that the project, commissioned in 1999, has gone through acute financial crunch. With inordinate delay, the project cost has gone up to INR 600 crore. While the allotment for the 2006-07 financial year was INR 20 crore only, it has been INR 80 core in recent railway budget.

The other problem delaying the project is the non completion of land acquisition yet. About 1,780 acres of land including 1,300 acres of private land in Jagatsinghpur, Kendrapada and Jajpur districts are required for it.