With 1349 Cr term loan from a PSB, SECL achieves key financial milestone
The total debt exposure in this financial contract will be of Rs. 1349.00 crore
New Delhi: In a major development in PM GatiShakti Rail Corridor Projects in Chhattisgarh, Rupee Term Loan documents were executed between the Central Bank of India under sole banking and the promoters, i.e., South Eastern Coalfields Ltd (SECL), Ircon International Limited (IRCON), CSIDC and CERL, here today, towards development of Phase-II of Chhattisgarh East Railway Limited (CERL). The total debt exposure in this financial contract will be of Rs. 1349.00 crore. This concludes the documentation process of achieving financial closure of the project, which is a major milestone.
Chhattisgarh East Railway Limited (CERL) is a subsidiary company of South Eastern Coalfields Limited (SECL) (with 64% stake) formed as a joint venture with Ircon International Limited (IRCON) (with 26% stake) and Chhattisgarh State Industrial Development Corporation (CSIDC), representing GoCG, (with 10% stake). CERL project is planned with the specific purpose of constructing rail infrastructure in the state of Chhattisgarh.Read Also : NSIC organises 2nd India-Taiwan SME Cooperation Forum
This Project is being implemented based on the Joint Venture (JV) model of PPP projects under Concession Agreement (CA) with MoR and is notified as 'Special Railway Project' to provide national infrastructure for a public purpose with high priority accorded by the Government of India. CERL is planned in two phases. The Phase I of CERL is majorly commissioned and is facilitating evacuation of Coal from Mand Raigarh Coalfields.
The CERL Phase-II project with a project length of 62.50 kms from Dharamjaygarh to Korba is planned to provide the critical rail link between CERL Phase-I which stretches from Kharsia to Dharamjaygarh with Spur line up to Pelma and three feeder lines (124.80 kms) and CEWRL which stretches from Gevra Road to Pendra Road (Main Line of 135 kms). This will provide an alternate rail route for transportation of coal to the northern parts of the country.
This will provide a link from Kharsia to Pendra which will facilitate surplus Coal movement of Mand-Raigarh Coalfields and Basundra Coalfields to the Northern and Western Power House of the Country.CERL Phase II project cost is estimated to be Rs. 1686.22 crore with a funding structure of Debt: Equity of 80:20 i.e., Rs 1349.00 crore of debt and Rs.337.22 crore of equity. Demonstrating the commitment towards the project, the promoters have already invested Rs. 273.81 cores in the project. Utilizing this money, the company has been able to acquire the required land and forest clearance. The project is expected to be completed by March 2026.Read Also : REC signs loan agreement with RUMSL
During the Rupee Term Loan document execution ceremony held today, Shri S. K. Pal, Director Technical (Opns.), SECL and Chairman (CERL), Shri G. Srinivasan, DF (SECL), Smt. Ragini Advani, DF (IRCON), Shri Y. K. Chaudhary, CTPM, SECR, ED (Coal) from Ministry of Railways, Ravi Valluri, CEO (CERL) and other senior officials of the Company were present.
This will facilitate in obtaining disbursements from the bank and undertaking the construction activity by the JV Company leading to employment opportunities in the state and economic growth. The Rail Corridor Project in Chhattisgarh will contribute to the Socio-Economic–Environmental advancement of the State of Chhattisgarh and propel growth.
SECL is one of the largest Coal producing subsidiary of Coal India Limited having produced 167 MT Coal in the last FY’. CERL Phase-II is a major National Infrastructure Project listed in Gatishakti.Read Also : Day 2 at CPSEs Roundtable & Exhibition 2023: CVO visited GAIL stall
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