MoU signed for Indore- Manmad new railway line project

NEW DELHI: A memorandum of understanding (MoU) for implementation of the 362 km Indore- Manmad New Railway Line Project was signed today between Jawaharlal Nehru Port Trust- Ministry of Shipping, Ministry of Railways, Govt of Maharashtra and Govt of Madhya Pradesh.nnContainers and other rail traffic from Indore and other Central Indian locations earlier had to follow a circuitous route through Vadodara and Surat to reach Mumbai, Pune and ports like JNPT, travelling a distance of 815 km.nnThe new project will reduce the distance from Mumbai/Pune to key central India locations by 171 kilometers, resulting in lower logistics costs.nnThis is especially significant as the new railway line will pass through the Delhi-Mumbai Industrial Corridor nodes of Igatpuri, Nashik and Sinnar; Pune and Khed; and Dhule and Nardana.nnThe MoU was signed today in the presence of Minister of Shipping, Road Transport & Highways, and Water Resources, River Development and Ganga Rejuvenation Shri Nitin Gadkari, Minister for Railways Shri Piyush Goyal, Minister of State for Defence Shri Subhash Bhamre, Chief Ministers of Madhya Pradesh – Shri Shivraj Singh Chouhan and Maharashtra CM – Shri Devendra Phadnavis.nnThe implementation of the project will be through the Indian Port Rail Corporation Limited (IPRCL) on Joint Venture SPV model. A Joint Venture Company will be formed between Ministry of Shipping or its nominated PSUs/Entity including JNPT (which will be the main promoter) with equity share of 55 per cent, Government of Maharashtra or its nominated PSUs/Entity, Government of Madhya Pradesh or its nominated PSUs/Entity, and others with equity share of 15 per cent each.nnSpeaking on the occasion Shri Gadkari hailed the signing of this MoU as a major step towards development of backward areas of Madhya Pradesh and Maharashtra through which the new railway line will pass.nnThe project is estimated to result in cumulative net economic benefits of Rs 15,000 crore in the first ten years of operations.nnThe Minister further said that the logistics advantages of the project include providing a shorter route for passenger as well as the freight traffic originating from / terminating at or crossing through the region.nnThe project will reduce the logistics cost for the cargo centres located in Northern India such as Lucknow, Agra, Gwalior and Kanpur belt as well as Indore ? Dhule ? Bhopal region to the gateway ports JNPT and Mumbai. It will provide an alternate route to the existing central and western railway lines and will reduce congestion on the over utilized existing railway network.nnGadkari also said that the project will help in employment generation, reduction in pollution, fuel consumption and vehicle operating costs. The project will be constructed within six years.