NMDC seeks access to Ranjitpura rail yard to ramp up operations in Karnataka

NMDC, the country’s largest iron ore miner, has written to the Railways seeking land and exclusive rights to a rail yard that will correspond with expansion of operations at the Donimalai and Kumaraswamy mines in the Bellary region of Karnataka.

In a letter to Railway Board Chairperson, Jaya Verma Sinha, the NMDC Chairman & Managing Director (additional charge) Amitava Mukherjee has sought a meeting in order to explain the need for seeking more land, particularly towards mechanising operations at a railway siding that will allow more dispatch of ore from the mines.

RECOMMENDATION

The Steel Ministry, under which the NMDC falls, has reportedly also put in a recommendation so that approvals for the project is spedup. The Donimalai & Kumaraswamy Mines in Bellary region of Karnataka State, where expansion of iron ore production capacity from existing 14 MTPA to 17 MTPA is under execution, falls under the jurisdiction of Hubbali Division of South Western Railway zone.

SWR STANCE

So far, the South Western Railway has rejected the handing over the land at Ranjitpura yard, citing the latter is a private yard and “exclusive access” can not be granted to the CPSE.

“Railways has a provision of leasing unused land to Government departments or PSUs for developing private siding. NMDC has approached South Western Railways with Detailed Project Report for remodelling at NMDCs’ own cost for enhancing siding capacity up to 17 MTPA for iron ore evacuation. Considering our capacity building plans under execution, commensurate augmentation of evacuation infrastructure is also required. Hence, it is requested that Railways may kindly approve the DPR of Ranjitpura yard remodelling or else lease the area …. for a period of 35 years for allowing NMDC to use the yard for stacking & loading,” Mukherjee wrote in his letter.

businessline has reviewed the letter.