Coal India Ltd, in collaboration with a government-owned port and a state waterways body, is considering an investment of up to ₹ 120 billion ($1.46 billion) to establish a water transport corridor in eastern India, according to government sources.
The proposed corridor, connecting two ports in Odisha state via the Brahmani river, has the potential to transport 12 to 15 million tonnes of cargo by 2030. It aims to serve a significant industrial cluster in India and primarily facilitate the movement of finished products such as steel, aluminum, sponge iron, and fertilizers.
This initiative by Coal India, Paradip Port Authority, and the Inland Waterways Authority of India is intended to alleviate congestion and reduce pressure on the existing rail and road infrastructure in the region, which is home to mines, steel plants, and fertilizer factories. Waterway transportation costs are approximately two-thirds of railways and half the cost of road transportation.
Furthermore, the water transport corridor will aid in the transportation of coal to power stations in southern and western states, addressing coal shortages that have caused power cuts due to a lack of railway rakes.
The project will also connect four major industrial clusters in Odisha, housing prominent companies such as Jindal Steel and Power, Adani Enterprises, Tata Steel, ArcelorMittal, National Aluminium Co, NTPC, and Indian Farmers Fertiliser Cooperative.
Once operational, private and public companies will be invited to operate terminal and cargo services along the corridor. A detailed project report is expected to be finalized within the next four to five months.
(Note: ₹ is the symbol for the Indian Rupee.)
For more such news stay tuned to FELA News!
