Rs.1,686.22cr CERL Phase II to be completed by March 2026
A Rupee Term Loan of Rs.1,349 crore has been executed for the development of 62.50 km Phase-II of Chhattisgarh East Railway Limited (CERL) which is planned with the specific purpose of constructing rail infrastructure in Chhattisgarh.
The total debt exposure in this financial contract will be of Rs.1,349.00 crore, and concludes the documentation process of achieving financial closure of the project, Ministry of Coal said on 28 Aug 2023.
The Rupee Term Loan documents were executed between the Central Bank of India under sole banking and the promoters — South Eastern Coalfields Ltd (SECL), Ircon International Limited (IRCON), CSIDC and CERL.
CERL, a 64% subsidiary company of South Eastern Coalfields Limited, is a joint venture with Ircon International Limited (IRCON) with 26% stake and Chhattisgarh State Industrial Development Corporation (CSIDC), representing the state government with 10% stake.
The Phase-II Project is being implemented based on the Joint Venture (JV) model of PPP projects under Concession Agreement (CA) with Ministry of Railways and is notified as ‘Special Railway Project’ to provide national infrastructure for a public purpose with high priority accorded by the Government.
Most of the Phase I of CERL is commissioned and is facilitating evacuation of Coal from Mand Raigarh Coalfields.
The CERL Phase-II project with a project length of 62.50 km from Dharamjaygarh to Korba is planned to provide the critical rail link between CERL Phase-I which stretches from Kharsia to Dharamjaygarh with Spur line up to Pelma and three feeder lines (124.80 km) and CEWRL which stretches from Gevra Road to Pendra Road (Main Line of 135 km).
This will provide an alternate rail route for transportation of coal to the northern parts of the country. This will provide a link from Kharsia to Pendra which will facilitate surplus Coal movement of Mand-Raigarh Coalfields and Basundra Coalfields to the Northern and Western Power House of the Country.
Estimated cost of CERL Phase II is Rs.1,686.22 crore with a funding structure of Debt: Equity of 80:20 i.e., Rs.1,349.00 crore of debt and Rs.337.22 crore of equity.
Demonstrating the commitment towards the project, the promoters have already invested Rs.273.81 cores in the project. Utilizing this money, the company has been able to acquire the required land and forest clearance.
The project is expected to be completed by March 2026.
This will facilitate in obtaining disbursements from the bank and undertaking the construction activity by the JV Company leading to employment opportunities in the state and economic growth.
The Rail Corridor Project in Chhattisgarh will contribute to the Socio-Economic–Environmental advancement of the State of Chhattisgarh and propel growth, said the Coal Ministry.
SECL is one of the largest Coal producing subsidiary of Coal India Limited having produced 167 MT Coal in the last FY. CERL Phase-II is a major National Infrastructure Project listed in Gatishakti. Fiinews.com
