SAIL, RVNL sign imported coal transportation agreement
State-owned Steel Authority of India Ltd signs an agreement with Rail Vikas Nigam Ltd for transporting imported coking coal using the Paradip-Haridaspur railway line.
By PTI |
NEW DELHI: State-owned Steel Authority of India Ltd on Wednesday signed an agreement with Rail Vikas Nigam Ltd for transporting imported coking coal using the Paradip-Haridaspur railway line.
RVNL would transport an assured volume of 5 lakh tonnes of coking coal per annum, a SAIL release said.
SAIL also handed over a cheque for Rs 2.5 crore as its equity contribution in Haridaspur-Paradip Railway Company, which has been formed by RVNL as a special purpose vehicle (SPV) for development of an 82-km railway line in Orissa to connect Paradip port with the hinterland.
The shareholders agreement for formation of the SPV was signed in October last year.
The traffic guarantee agreement, which has made SAIL a strategic investor in the company, ensures SAIL the availability of required number of rakes from Indian Railways for movement of imported coking coal to meet its production target of 2010. The company will also enjoy reduced freight rates for some destinations, the release added.
RVNL would transport an assured volume of 5 lakh tonnes of coking coal per annum, a SAIL release said.
SAIL also handed over a cheque for Rs 2.5 crore as its equity contribution in Haridaspur-Paradip Railway Company, which has been formed by RVNL as a special purpose vehicle (SPV) for development of an 82-km railway line in Orissa to connect Paradip port with the hinterland.
The shareholders agreement for formation of the SPV was signed in October last year.
The traffic guarantee agreement, which has made SAIL a strategic investor in the company, ensures SAIL the availability of required number of rakes from Indian Railways for movement of imported coking coal to meet its production target of 2010. The company will also enjoy reduced freight rates for some destinations, the release added.
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