Published On:February 17 2009
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RVNL suggests upward revision of rail project cost

Bhilai: Rail Vikas Nigam (RVNL), entrusted with the construction of 90-km long railway line between Rowgaht iron ore belt and the Dalli Rajhara iron ore belt following the signing of a memorandum of understanding between Steel Authority of India, Indian Railways and Chhattisgarh Government in December 2007, has suggested an upward revision of the project cost.

The original cost of Rs 304 crore calculated on the basis of 2004-05 estimate has been revised upward to Rs 652 crore, according to a spokesman for Bhilai Steel Plant (BSP) which is to source iron ore from the Rowghat mines.

BSP will initially bear the cost to be adjusted later against the freight which will become due for payment to the Railways for transporting ore.
BSP has already paid Rs 53 crore to the Railways.
The rail movement of iron ore from Rowghat mines is targeted to start in December 2012.

Currently, , BSP sources the ore from Dalli Rajhara mines connected to the steel plant by an 85-km long railway line.

However, as it is indicated, the ore reserve at Dalli Rajhara is fast depleting.

More important, as the stock depletes, the share of impurities (known as gangue) in the ore rises.
Rowghat, therefore, has been identified as the alternative source.

The present BSP-Dalli-Rajhara rail network will thus be extended to Rowghat.

RVNL’s job will include not only laying of railway lines between Dalli Rajhara and Rowghat, including construction of a merry-go-round system, in a difficult terrain but also deforestation and land development.

The merry-go-round system is being planned between Rowghat and Dalli Rajhara and also between Dalli Rajhara and BSP to achieve more efficient rail transportation of ore from the mines, it is pointed out.

On completion of the project, the rail network is to move an estimated 14 million tonnes of ore annually.

BSP, the major manufacturer of rails and structurals, will supply the same items for the Rowghat rail project.

An additional Rs 450 crore will be spent on the creation of additional facilities for unloading and re-loading of ore at Dalli Rajhara.

This is because the land use plan at Rowghat rules out any beneficiation or washery facility at Rowghat.

Which means, the ore mined at Rowghat will be transported to Dalli Rajahara washery for a wash to remove the impurities.

An estimated two million tonnes annually of impurities thus will be transported from Rowghat to Dalli Rajhara, add the spokesman.

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