Date:04/03/2005 URL: http://www.thehindubusinessline.com/2005/03/04/stories/2005030401580700.htm

Back Kutch Rail set for financial closure

Mamuni Das

New Delhi , March 3

KUTCH Railway Company Ltd (KRCL), the country's longest gauge conversion project for improving rail connectivity to ports undertaken by a public-private partnership till date, is all set to attain financial closure by raising Rs 250 crore.

With an equity capital of Rs 200 crore, put together by Rail Vikas Nigam Ltd (RVNL), Kandla Port Trust, Gujarat Mundra Adani Port and the Gujarat Government, KRCL is close to roping in its entire debt component of Rs 250 crore by April this year, sources said.

KRCL, a special purpose vehicle created to provide shorter route to the ports of Kandla and Mundra, will engage in gauge conversion work in the 301 km route between Palanpur and Gandhidham after the financial closure.

"We are at the final stages of raising a debt of Rs 250 crore from various banks and financial institutions. The non-recourse funding will be raised at competitive rates of well below 8 per cent," said officials.

In the KRCL project, RVNL has an equity participation of Rs 100 crore, followed Kandla Port Trust with Rs 52 crore, Gujarat Mundra Adani Port with Rs 40 crore and Rs 8 crore by the Gujarat Government.

Another public-private partnership is Pipapav Railways Corporation Ltd (PRCL), which was formed for construction, operation and maintenance of the 269-km long Surendranagar-Pipapav gauge conversion/new line project. PRCL has equal equity participation from Railway Ministry and Gujarat Pipapav Port Ltd.

Similarly, Hassan-Mangalore Rail Development Company - formed for gauge conversion, operation and maintenance of 142-km track between Hassan and Mangalore — is owned by Indian Railways, Karnataka Government, Rail Infrastructure Development Company (Karnataka) and other strategic investors.