New Delhi, Dec. 9: SAIL is keen to pick up a stake in a Rs 8,000-crore project to lay tracks between Sonnagar in Bihar and Dankuni, near Calcutta, as part of the railways’ eastern freight corridor project.
The World Bank had earlier committed to fund the construction of the corridor but only from Ludhiana in Punjab to Sonnagar.
Sources said the state-owned steel major was treating the project both as a sound investment proposition fetching good returns as well as a market for its rails. SAIL will make a presentation to the railways tomorrow.
Though the discussions on the freight corridor are at a conceptual stage, the exercise marks the strengthening of an existing relationship.
SAIL and the railways have joined hands to set up a wagon plant at Kulti.
The two are also exploring the possibility of setting up more such ventures, which will guarantee the offtake of SAIL’s value-added steel.
The railways are seeking a complete solution to the laying of tracks and renewals. Entities must not only supply the rails but also provide technology and engineering solutions for the laying of the tracks, their maintenance and renewal.
SAIL plans to produce single rail pieces of 130-metre length, with a provision for welding them up to 260 to 520 metres for the freight corridor. Existing rails are of 13 or 26 metres.
The new planned long rails have fewer welded joints, a longer life and are, thus, considered safer.
The PSU now has in-house expertise to produce heavier rails for facilitating the movement of heavier rakes.
SAIL’s upcoming Universal Rail Mill of 1.2 million tonne capacity at Bhilai is expected to mainly cater to the railways’ future needs.
Railway minister Mamata Banerjee had earlier said her ministry was formulating a policy to enable the private sector to fund sections of the freight corridors in return for permission to set up industry on adjoining railway land.