India-based state run miner National Mineral Development Corporation (NMDC) has signed a memorandum of understanding with Indian Railways, according to Press Information Bureau of India.
Accordingly, the 150-km Jagdalpur-Kirandul section of the Kottavalsa-Kirandul line of the East Coast Railway will be doubled to increase the shipment capacity of NMDC to meet the increased demand for iron ore of the Indian steel industry.
The project will be implemented by Indian Railways at a cost of INR8.26 billion ($150.3 million) which will be funded by NMDC with provisions for suitable returns through freight rebate. The Railways will additionally make necessary investment in wagons, locomotives, other maintenance facilities and deployment of staff. The new line is likely to create an additional traffic of up to 12 million mt per year in phases.