Date of Post: 14 Nov, 2018
Krishnapatnam Railway Company Limited (KRCL) has received an investment of Rs 125 crore from Sagarmala Development Company for the development of a 114km rail corridor connecting Obulavaripalli and Krishnapatnam Port, it said on Tuesday.
KRCL is a SPV (Special Purpose Vehicle) formed for connecting Obulavaripalli (Kadapa district) and Krishnapatnam (Nellore) in Andhra Pradesh at a total estimated project cost of Rs 1,850 crore.
- KRCL said in a statement,”The initiative will connect Krishnapatnam Port on the east coast with the network of Indian Railways at Venkatachalam at one point and Obulavaripalli on the other.”
- A 21 km Section of the project line from Krishnapatnam to Venkatachalam is fully operation since July 2009, in single line and was converted to double line since March 2014.
- “This is an extremely exciting project for KRCL. The new rail corridor will help optimise costs, accelerate growth whilst enhancing the city’s EXIM competitiveness. This would result in huge savings both in freight costs and time to help develop Kadapa into a discrete trading cluster through multi-modal logistics solutions,” commenting on the development Anil Yendluri, Managing Director, KRCL said.
- The statement said that the 114 km long rail corridor is expected to revolutionise the EXIM trade dynamics for the hinterland district of Kadapa.
- It is well poised to reduce transit time drastically by offering a direct entry into the port.
- The shareholding pattern is KRCL is RVNL 30%, Krishnapatnam Port Co Ltd 30%, NMDC Ltd 15%, Government of Andhra Pradesh 13% and BIL 12%.
- The statement said, under phase-2 from Obulavaripalle to Venkatachalam (94 Km) the progress of rail construction work is in in full swing.
- Track linking of the entire length has already been completed, it added.
- Sagarmala is an ambitious initiative by Government aimed at bringing about a stepping change in India’s logistics sector performance, by unlocking the full potential of India’s coastline and waterways.
- The vision of Sagarmala is to reduce logistics cost for both domestic and EXIM cargo with optimised infrastructure investment.
- Sagarmala aspires to reduce logistics costs for EXIM and domestic cargo leading to overall cost savings of Rs 35,000 to 40,000 crore per annum.
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Narinder Sharma is a part of the content team of Rail Analysis India as a writer and marketing executive.
His interest is in the Railways , Metro and Transportation Sector of India .
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