IM Angul Railways PIF II

M/s ANGUL SUKINDA RAILWAY LTD
INFORMATION MEMORANDUM
SINGLE RAILWAY LINE OF 113.395 KM BROAD-GAUGE IN ODISHA

FROM ANGUL TO SUKINDA
Image indicative only

1. EXECUTIVE SUMMARY
Name/Borrower M/s Angul Sukinda Railway Ltd

CIN U45203OR2009PLC010620 registered with RoC – Cuttack
Constitution Public Limited Company (PPP- Joint Venture)
Date of
20/02/2009
Establishment
7622/4706, Press Chhak, Gajapati Nagar, Post- Sainik School,
Registered Office
Bhubaneswar
To set up 113.395 km broad gauge single railway line between
Proposed Project Budhapankh station (Angul) and Baguapal station (Sukinda) in the
state of Odisha
Nature of Business Infrastructure – Railways
1. RVNL
2. JSPL
3. CCI
Promoters
4. Govt. of Odisha
5. OMC State Govt. organizations
6. IDCO
Key Person Mr. D K Samantary, IRAS – Managing Director
Project Cost and Cost of Project:
Means of Finance (` in Crore)
Earlier
Present
Particular As Per IM-
Revision
Nov 2015
Preliminary Expenses 3.56 2.97
Land Cost 100.00 150.00
Formation 257.06 242.56
Permanent Way 249.13 280.01
Bridge Work 419.76 424.16
Stations, Building and Others 64.04 71.98
Plant and Machinery 2.02 2.27
Total Civil Works 1095.57 1023.95
Signaling & Telecommunications
Engineering 53.19 59.79
Electrical Engineering 132.71 149.16
Gross Total 1281.47 1382.89
Contingencies @ 3% 38.44 41.49
Sub Total “A” 1319.92 1424.38
Direction & General Charges @ 8.75% of “A” 115.49 124.63
Sub Total “B” 1435.41 1549.01
RVNL Charges @ 5% on “B” 71.77 77.45
Sub Total 1507.18 1626.46
Pre-operative expenses 6.00 6.00
Interest During Construction 82.09 76.61
DSRA 56.81 53.78
Grand Total 1652.09 1762.86
Means of finance:
(` in Crore)
Particulars Present
Revision
Equity 600.00
Debt 1162.86
Total 1762.86
External Ratings To be conducted within a period of 06 months from the date of 1st
disbursement.
Concession Concession agreement has been executed between Ministry of
Agreement Railways and ASRL on 14th May, 2010
Concession Period 30 years of operation
Freight Collection Freight will be collected by East Coast Railways (ECoR) and ASRL
would get proportionate freight as per extent guidelines of Railways.
1.1 Indian Railways is one of the largest and busiest rail networks in the world, transporting
over 22 million passengers and more than 1.3 million tonnes of freight daily. It is a multi-
gauge network consisting of Broad, Meter and Narrow gauges.
1.2 Government of India (GoI) conceived an investment plan for rail sector to eliminate capacity
bottlenecks on Golden Quadrilateral and Diagonals to provide strategic rail communication
links to ports, construction of mega bridges for improving communication to the hinterland
and development of multi-modal transport corridors. To implement the said plan GoI
launched a scheme in the name of National Rail Vikas Yojna (NRVY) on 26th December,
2002 with the following investment plans:
• Strengthening of Golden Quadrilateral and Diagonals connecting the 4 metro cities

i.e. Delhi, Mumbai, Chennai and Kolkata
• Providing Rail based port-connectivity and development of corridors to hinterland
including multi-modal corridors for movement of containers
• Construction of 4 mega bridges at Patna and Munger on river Ganga, at Bogibeel on
river Brahmaputra and at Nirmali on river Kosi.
1.3 Rail Vikas Nigam Limited (RVNL), is a Special Purpose Vehicle created to undertake project
development, mobilization of financial resources and implement projects pertaining to
strengthening of Golden Quadrilateral and Port Connectivity. It is the first major non-
budgetary initiative for creating rail transport capacity ahead of demand and on a
commercial format. RVNL has been registered as a company under Companies Act 1956 on
24.1.2003. It is a wholly owned Government company under the provisions of Section 617
of Companies Act. Certificate of Incorporation was obtained on 24.1.2003.
1.4 RVNL has been created for the following purposes:
• To develop various projects, as covered under the above mentioned investment plans of
NRVY, to enable non-budgetary funding, mobilize financial resources and execute those
projects. The projects are offered to railways for train operation and maintenance under
the specific financial arrangement.
• RVNL is a PSU, which provide equity support to SPVs/other PSUs/state govt.
institutions/joint ventures.
• RVNL is an umbrella Special Purpose Vehicle (SPV), which undertakes project
development, resource mobilization and can undertake the projects directly or by creation
of Project Specific SPVs or any other financing structure, which is found suitable for a
particular project. These projects could be undertaken directly or as per Memorandum
(MoU), signed between Ministry of Railways (MoR) and RVNL on October, 2003, the
projects could be undertaken by the project specific SPVs.
• RVNL is to take up capacity augmentation projects on the Golden Quadrilateral and other
bankable projects covered under National Rail Vikas Yojana. This programme included
capacity augmentation projects on Golden Quadrilateral and its diagonals, last mile port
connectivity and corridors to hinterland.
1.5 In order to achieve the objectives, RVNL creates project specific SPVs for implementation
of projects. The following are some of the projects being planned / executed under SPV route
by RVNL.
• Haridaspur – Paradip Railway Line (Odisha) – under implementation

• Bharuch – Samni – Dahej Gauge Conversion (Gujarat) – completed
• Surat – Hazira New Line (Gujarat) - Completed
• Obulavaripalle – Krishnapatnam New Line (Andhra Pradesh) – under implementation
• Arisikeri Hassan – Mangalore Gauge Conversion (Karnataka) – completed
• Gandhidham – Palanpur Gauge Conversion (Gujarat) – completed
• Angul – Sukinda new Line (Odisha) – under implementation
1.6 Angul – Sukinda Railway Limited (ASRL) is a joint venture of RVNL, State Govt. of Odisha,
State Govt. organizations, Container Corporation of India and JSPL. ASRL was incorporated
in February 2009 by RVNL for developing, financing, construction, operation and
maintenance of Proposed Broad Gauge (1676mm) single railway line between Angul and
Sukinda in Odisha to establish direct link between iron-ore rich areas of Odisha viz. Joda-
Barbil to steel and sponge iron industries in Angul region and between coal mining region
in Talcher to industries in Jakhapura, Joda-Barbil and areas in Kendujhar district.
1.7 In the long term, the Project is expected to reduce distance between industrial areas such as
Rourkela and Dhamra/Paradip ports.
1.8 As per the Memorandum & Articles of Association, the main objectives of ASRL are as
follows:
• To carry on the business of development, establishment, financing, construction,

operations, maintenance and management of railway projects and facilities and in
particular for the development, establishment, financing, construction, operations,
maintenance and management of the Angul- Sukinda railway linkage.
• To carry on further business of the Project and implementing additional railway lines in
the vicinity of the Project
• To mobilize capital from FIs/banks/investors and to manage the investment of such funds
in railway project
• Completion of Civil Works, installation of equipment and facilities for the Project, testing
and commissioning and subsequent operations, and maintenance of the railway line for a
period as specified in the Concession Agreement.
• Collect all specified revenues generated by the Project and also undertake such other
activities as may be considered necessary to implement the Project successfully and in
accordance with the Concession Agreement.
1.9 The key objectives of the company are in-line with the scope of the company as per
concession agreement dated 14.05.2010, signed between ASRL and Ministry of Railways.
The proposed project may facilitate the transportation of iron ore, coal, bauxite from nearby
quarries to the upcoming industries in Jharsugoda Industrial Cluster and to nearby Thermal
Power Plants.
1.10 During 2014-15, company had floated bid for undertaking syndication assignment and
Canara Bank was qualified in the bid. Accordingly detailed study was conducted,
Information Memorandum was prepared for rail line of 104.24 KM with estimated project
cost of ` 1652.09 Crore funded by promoter contribution of ` 600 Crore and debt of `
1052.09 Crore. The debt tie up for the same was achieved.
1.11 During 2016 before execution of loan documentation, the scope of the project underwent
revision and rail line was proposed to be extended from 104.24 KM to 113.395 KM by MoR
to aid the congestion free movement on both ends of the line. Accordingly, Company has
undertaken construction of rail line of 113.395 KM. However the revenue apportionment by
East Coast Railways will be on 103.601 KM only.
1.12 The revised project cost for the rail line is estimated at ` 1762.86 Crore, to be funded by
equity of ` 600 Crore and debt of ` 1162.86 Crore. The COD of the project is revised from
July 2018 (earlier) to July 2019. The detailed revised term sheet is furnished in annexure I.
1.13 The company has infused entire promoters contribution of ` 600 Crore and has incurred
an amount of approx. ` 407.29 Crore as on 30.06.2017 towards the project.
1.14 Company has received letter from East Coast Railways citing the traffic projection of
Mahanadi Coal Ltd on the proposed traffic. The annual contracted quantity of traffic is
projected at 13.7 million tons per year. Further the company has assumed the traffic based
on the latest data available with RVNL/ECoR.
1.15 Overall DSCR of the project worked out to 2.00, as against earlier DSCR of 2.03 as per IM
dated November 2017.
ANGUL SUKINDA RAILWAY LIMITED
The organizational structure of the company is as follows:
Chief Financial Company Manager Traffic Manager (F&A)

(Civil) Officer Secretary
Share holding pattern of the company as on 31.03.2017 is furnished below:
Sl. % of
No. Name of the Share Holder No of Shares ` per share Amount in ` Holding
1 Rail Vikas Nigam Limited 189,000,000 10 1,890,000,000 31.50

2 Jindal Steel & Power Limited 60,000,000 10 600,000,000 10.00
3 Government of Odisha 127,800,000 10 1,278,000,000 21.30
Odisha Mining Corporation
4 Limited 63,000,000 10 630,000,000 10.50
Orissa Industrial
Infrastructure Development
5 Corporation 4,200,000 10 42,000,000 0.70
6 CONCOR 156,000,000 10 1,560,000,000 26.00
Total 600,000,000 6,000,000,000 100.00
The Board of company is being managed by Directors from Indian Railways, Nominee
director from RVNL and Govt. of Odisha, CONCOR, JSPL etc.
S.N Name of Director Designation DIN D.O.B PAN No

1 Sri Alok Ranjan Chairman
2 Sri Dilip Kumar
Samantray Managing Director
3 Sri Arun Kumar Director
4 Sri Hare Krushna Sahu Director
5 Sri Surendra Kumar Director
6 Sri Manoj Kumar Director
S.N Name of Director Designation DIN D.O.B PAN No
Mishra
7 Sri Sushanta Kumar
Mohanty Director
8 Sri Kapil Rawat Director
9 Dr. (Mrs) Padmanabhan
Allirani Additional Director
10 Sri Arun Kumar
Shrivastava Additional Director
11 Sri Sudhansu Ranjan
Mohapatra Director
12 Sri Sudhansu Sekhar
Guru Independent Director
13 Smt. Saveeta Mohanty Independent Director
PROMOTER COMPANY - RVNL
2.1 Rail Vikas Nigam Limited (RVNL) was incorporated by Ministry of Railways. It is created
with an objective of raising non-budgetary resources for rail capacity projects and
implement them on fast track basis. It has established itself as a major developer of fixed
rail infrastructure projects. The model followed by RVNL is to form a SPV for
connectivity/strengthening of Golden Quadrilateral, with partnership from the stakeholders
like ports, the users of line and the respective state governments.
2.2 Rail Vikas Nigam Limited (RVNL), a fully owned Public Sector Undertaking under the
Ministry of Railways (MoR), Government of India was incorporated on 24th January, 2003
with an authorized share capital of ` 3000 crore. The objectives of the Company include the
following:
• Fasttrack implementation of Rail infrastructure projects

• Raising extra budgetary resources for project execution
2.3 As per the information available in RVNL website, RVNL has completed 28 projects and
66 Projects are under execution.
2.4 Board of Directors: the Board of Directors of RVNL comprises of five Directors.
Brief of Other Promoters:
M/s JINDAL STEEL AND POWER LTD (JSPL)
2.5 JSPL is one of the fast growing companies in India. The company is led by Mr. Naveen
Jindal, the youngest son of Shri O.P. Jindal.
2.6 JSPL operates the largest coal-based sponge iron plant in the world and has an installed
capacity of 3 MTPA (million tonnes per annum) of steel at Raigarh in Chhattisgarh. It has
also set up a 0.6 MTPA wire rod mill and 1 MTPA capacity bar mill at Patratu, Jharkhand, a
medium and light structural mill at Raigarh, Chhattisgarh and 2.5 MTPA steel melting shop
and a plate mill to produce up to 5.00-meter-wide plates at Angul, Odisha.
2.7 The company will be investing US $ 6 billion in the state for steel production and power
generation. The proposed steel plant to be set up in Odisha will produce 12.5 MTPA steel
and generate 2600 MW of power in phases. In the first phase, the company is setting up a 6
MTPA integrated steel plant at Angul. A 2.5 MTPA steel melting shop (SMS) has been
commissioned. The project is in a fast-track mode, with the 1.5 MTPA plate mill and an 810
MW captive power plant already commissioned
2.8 JSPL has plans to set up 12.5 MTPA integrated steel plant in the state of Odisha. In the first
phase, a 6 MTPA integrated steel plant at an investment of US $ 6 billion is coming up in
Angul.
2.9 JSPL have achieved total revenue of ` 12852.46 Crore during FY 15-16.
ODISHA MINING CORPORATION LIMITED:
2.10 It is a Joint Venture Company, promoted by Govt. of Odisha and Govt. of India to explore
and harness mineral wealth of the State of Odisha and make value addition. Subsequently
OMC became a wholly State-owned Corporation of Govt. of Odisha during November 1961.
2.11 The major minerals mined by OMC are chrome, iron and manganese ore which cater to the
requirement of mineral based industries such as steel, sponge iron, pig iron, ferro-
manganese, ferro-chrome, etc.
2.12 The authorized capital of the Company is ` 100 Crore and the Paid up Capital is ` 31.45
Crore as at .
2.13 The company has generated revenue of ` 2331.43 Crore and earned a profit of ` 770.24
Crore during the FY 2016-17.
ORISSA INDUSTRIAL INFRASTRUCTURE DEVELOPMENT CORPORATION
LIMITED (IDCO) (A GOVT. OF ODISHA UNDERTAKING):
2.14 The Industrial Development Corporation of Orissa Limited was incorporated on 29th
March, 1962 as a wholly owned State Government Company to overcome the
entrepreneurial deficiency in the State and mobilize resources for industrialization.
GOVERNMENT OF ODISHA:
2.15 The state of Odisha is known for its mineral resources. With development of infrastructure
and connectivity, the state is expected to receive large scale investments in mineral based
industries. It has one fifth of India's coal, one forth of India’s iron ore, one third of India’s
bauxite reserves and most of the chromite. The state is expecting high level of
industrialization in the future.
CONTAINER CORPORATION OF INDIA
2.16 Container Corporation of India Ltd. (CONCOR), was incorporated in March 1988 under the
Companies Act, and commenced operation from November 1989 taking over the existing
network of 7 ICDs from the Indian Railways.
2.17 CONCOR is a market leader having the largest network of 66 ICDs/CFSs in India. In
addition to providing inland transport by rail for containers, it has also expanded to cover
management of Ports, air cargo complexes and establishing cold-chain. CONCOR will
continue to play the role of promoting containerization of India by virtue of its modern rail
wagon fleet, customer friendly commercial practices and extensively used Information
Technology. The company developed multimodal logistics support for India’s International
and Domestic containerization and trade. Rail is mainstay of the company’s transportation
plan, however, road services are also provided to cater to the need of industries in both
International and Domestic business.
2.18 The company has achieved revenue turnover of ` 6087.24 Crore and earned a profit of `
786.93 Crore for FY 15-16.
3. PAST PERFORMANCE OF ASRL
Select Key Financial Indicators of Angul Sukinda Railway Ltd. (ASRL)
(` in Crore)
ABS ABS
Particulars
31.03.2016 31.03.2017
Equity Share Capital 600.00 600.00
Reserves and Surplus 45.88 67.73
Tangible Net Worth 645.88 667.73
Capital Employed 645.88 667.73
Current Assets 438.73 316.37
Current Liabilities 0.30 0.25
Intangible assets under development 178.64 297.40
Revenue from Operations 59.59 118.76
Other Income 41.93 28.40
Net Profit After Tax 32.41 21.85
3.1 The proposed project is under implementation. The COD is now revised to 1st July 2019.
3.2 The authorized share capital of the company is ` 600 Crore, comprising of 60 Crore
number of equity shares with face value of ` 10 each and fully paid.
The promoters have brought in their contribution of ` 600 Crore upfront, as envisaged
for the project funding and the same was incurred towards capex and balance is in the
form of cash and bank balance.
Tangible Net Worth (TNW):
3.3 TNW of the company has increased from ` 645.88 Crore as on 31.03.2016 to ` 667.73
Crore as on 31.03.2017 on account of interest income earned on the bank deposits.
3.4 As per the expenditure statement provided by RVNL to ASRL, the company has
expended approx ` 407.29 Crore as on 30.06.2017 towards the project.
3.5 For the year ended 31st March 2017, the company has recognized revenue of ` 118.76
crores (` 59.59 crores for the year ended 31.03.2016) on construction of intangible assets
under service concession arrangement.
Company has recognized nil profit on construction of intangible assets under service
concession arrangement. The revenue recognized in relation to construction of Intangible
assets under service concession arrangement represents the fair value of services provided
towards construction of intangible assets under service concession arrangement. The
company has not recognized any revenue from operation of railway line since the
construction of line is in process and the revenue is proposed to be booked once the
operation of line is commenced.
The company has recognized receivable under service concession arrangement measured
initially at fair value and subsequently at amortized cost as at 31st March 2017 of ` 9.28
crores (` 6.83 crores as at 31.03.2016 and as at 1st April 2015: ` 4.75 crores), representing
the present value of fresh land acquired by MOR and leased to ASRL which is recoverable
at the end of concession period from MOR, of which ` 1.04 crores (`
0.43 crores as at 31.03.2016) represents accrued interest.
3.6 Other income denotes Interest income on bank deposits amounting to ` 27.79 Crores
during the FY 2016-17.
4. PROJECT DETAILS
4.1 Project Background:
Angul Sukinda Railway Limited (ASRL) has been incorporated with an objective to
undertake construction and maintenance broad gauge single railway line between
Budhapankh station (Angul) and Baguapal Station (Sukinda) in Odisha for the purpose of
transporting goods.
Proposed rail line provides a shorter connectivity and would facilitate faster goods
movement. This line will be connected to Banspani - Dubri line, which is currently being
used by steel plants in Sukinda region for inbound iron ore movement from Banspani and
Barbil region.
Major beneficiaries of the proposed line would be steel plants in Angul region (transporting
iron ore from Banspani and Chromate from Sukinda), coal based thermal power plants in
Sukinda (transporting thermal coal from Talchar coal fields), many of the steel plants are
having captive power plant. Steel & power plants in Lapanga and Rengali area of Sambalpur
district (transporting iron ore from Banspani and coal from Talcher).
The proposed alignment will have the following impact:
- It will establish a direct link between coal producing areas i.e. the Talcher Coalfields and
the coal consuming area of Daitari Industrial Complex near Sukinda Road Railway
Station.
- It will avoid the existing congested and circuitous route of the Talcher – Rajatgarh –
Kapilas Road – Jakhapur and will provide an alternative and shorter route for the coal
traffic.
- Dispatch of finished products of the steel plants of Daitari Industrial Complex to

destinations in Mumbai and Delhi area via Talcher – Sambalpur – Jharsuguda will also
be cheaper via the proposed alignment in comparison with the route via Kharagpur.
The proposed line may also facilitate the transportation of iron ore, coal, bauxite from
nearby quarries to the upcoming industries in Jharsugoda Industrial Cluster and to nearby
Thermal Power Plants. The project line starts at Budhapank Station near Angul and
terminates at Baguapal Station near Sukinda.
4.2 Project - Geographic area:
The project area falls within the range of eastern ghat hills. The terrain is undulate, with
isolated small hills. The alignment mostly runs from West to East and the ground contour
varies from 28m to 97m.
About 70km route length of the proposed alignment falls within Dhenkanal district and the
balance length falls within Jajpur district of Orissa state.
The starting station, Budhapank is an important station on the existing Cuttack- Talcher
B.G. section of East Coast Railway which deals with the both inward and outward traffic
for Nalco.
The Terminus station, Baghuapal is on road side (nearby) station on the existing Jakapura
– Daitari section of East Coast Railway.
The important river cross the alignment at about 7km from Budhapank point of the project.
The project area is drained out by the river Brahmani mainly. The major tributaries are
Ramaila, Damsala, and Pandra nala. Some area is irrigated through Network of irrigation
canal and Rengali irrigation project is under construction. The irrigation canal crosses the
proposed alignment at different location.
N.H.200 is running almost parallel to the proposed alignment. N.H.5 is about 25km from
Sukinda on the eastern side. Express High way passes near Dubari station.
Angul district is having a major coal deposits and Talcher railway station about 9km from
Budhapank station is a nodal point for transportation of coal throughout the India by rail
route.
There are three power houses which belongs to state Govt., NTPC and there is one
commissioned power plant of M/s GMR near Brahamani River Bridge. Further, National
Aluminum company is running their own Cogen plant and smelter plant.
The following depicts the proposed railway line starting from Budhapank in Angul and
ending at Baguapal in Sukinda.
Depicts the companies in and around the proposed line

Railway Stations (existing and proposed)
The following route map depicts important stations in between Budhapank in Angul and
ending at Baguapal in Sukinda.
However, the revenue generation from the line i.e. total of 103.601 KM will be considered
for apportioning by East Coast Railways to company. The total line excluding the bridges
and flyover meant to decongest the traffic movement connecting the existing line is 103.601
KM. Hence, calculation of revenue and apportionment of revenue will be based on 103.601
KM only.
4.3 Scope of the Project
As per Concession Agreement signed between the company and Ministry of Railways,
Government of India signed on 14.05.2010, the Concessionaire is authorized to develop,
finance, design, engineer, procure, construct and operate and maintain the broad guage rail
link connectivity between Talcher Road in Angul District at km. 0.000 and Baghuapal in
Jajpur district at km 93.165 and to exercise and /or enjoy the rights, powers, benefits,
privileges, authorizations and entitlements as set out in the Concession Agreement during
the Concession Period.
The freight will be collected by the East Coast Railways and ASRL will get proportionate
share of freight as per the zonal rates mentioned in the policy issued by Indian Railways
from time to time. Further, company has to annually share 20% revenue of non originating
traffic with Ministry of Railway after 4th year of operations.
4.4 Concession Agreement:
The key terms and conditions of the Concession Agreement signed on 14.05.2010 are
furnished below:
Concession Period: The concession period would be determined with reference to attainment
of the NPV payback benchmark at the rate of return of 14%. The concession period shall be
30 years of operation or till the time NPV payback equal to the equity investment is reached,
whichever is earlier. (Clause 4.6.1)
[On the basis of above clause, the concession period may get shortened from 30 years of
operations from COD, therefore it is suggested to keep a provision of cash sweep of entire
cash surplus from the operation of project line over and above ` 75 Crore at any point of
time. During the currency of the loan the amount shall be utilized towards repayment of the
outstanding debt with no pre-payment penalty. The cash surplus shall be adjusted in the
order of inverse repayment]
Construction Period: The construction period means the period commencing from the date
of signing of this agreement (14.05.2010) and ending on commissioning (Clause 1.1). [The
construction period is assumed to be 7.25 years from start of work (i.e. FY 2012-13).
However, the company has approached the banks during FY 2014-15 for debt. The company
has proposed to use 100% of the promoter contribution before availing the debt facility].
Rights of Concessioning Authority: The concession authority/MoR shall be entitled to the
following:
• MoR shall be entitled to run on the Project Railway, BG passenger services without
paying any access charges to ASRL, provided however that, any new passenger service
on the Project Railway shall be commenced only with prior written consent of ASRL
• The right to collect traffic from non-container traffic originating, terminating and
moving on the Project railway, and haulage charges from container operations.
• Without in any way adversely affecting the movement of traffic on the Project Railway
or otherwise adversely affecting the functioning of the Project Railway, the
Concessioning Authority can connect other rail lines which are constructed in
accordance with the normal expansion plans of MoR; to the Project Railway, at any
point along its length
• The right to modify, suspend or revoke the rights of the concessionaire under National
Emergency during the period of National Emergency, limited for the period of such
National Emergency (Clause 4.4)
• The right to quote special tariff rates for freight moving within the Project Railway
i.e. where the origin and destination both are on the Project Railway in terms of the
policy instructions issued by MoR from time to time.
• The right to receive from MoR, its share in accordance with the rules of inter-railway
apportionment of earnings, of the tariff collected from the freight traffic originating,
terminating and moving on the project railway, including haulage charges and
maintenance costs, in accordance with the Project related Agreements (Clause 4.2
Concession Agreement). The due share of ASRL in the freight traffic earnings shall be
apportioned and paid to it by MOR as per the rules of inter-Railway Financial
adjustment after defraying the operation & maintenance cost in accordance with the
related agreements.(clause 4.4b)
• The apportionment of freight traffic earnings will be made at 100% of the revenue
normally accrued to ASRL for the first four years from COD, and thereafter , at the rate
of 80% of revenue in case of non-originating traffic and 90% of the revenue in case of
originating traffic.(clause 4.4b)
Transfer of Assets to MoR: upon Expiry, the Project Assets shall be handed over by ASRL to
MoR in accordance with the provisions of Article 8. (Clause 5.1).
ASRL’s Event of Default: ASRL shall be deemed to have committed an Event of Default if
any of the following occurs, unless such event has arisen on account of Force Majeure Event
or Concessioning Authority Event of Default;
a. Unlawful repudiation of this Agreement by ASRL;
b. Appointment of a liquidator provisional or otherwise for winding up of ASRL,
unless such appointment has been set-aside within 90 days of such appointment.
c. Failure to comply with the lawful directives given by Central Government having
the statutory rights to issue such directives with respect of the Project Railway
d. Breakdown of any of the Project Related Agreement (the Concession Agreement,
Shareholders agreement between RVNL, JSPL and ASRL, Lease Agreement,
Agreement for construction to be entered into by ARSL and RVNL, Agreement for
Operations and Maintenance to be entered into by ARSL and East Coast Railway)
on account of ARSL default, rendering the Concession Agreement inoperable
e. Abandonment of the construction of the Project Railway
f. A breach of any of its obligation under a material provision of the Concession
Agreement
g. Failure on the part of ARSL to perform its obligations under any of the Financing
Documents(collectively the documents evidencing Lenders’ commitment to
finance the Project) that led to recall of the financial assistance by the Lenders
h. Non-payment by ASRL a material amount defined as amount equal to lease
charges payable for one year (Clause 7.1)
Concessioning Authority Event of Default: Concessioning Authority shall be deemed to have

committed an Event of Default if any of the following occurs, unless such event has arisen
on account of Force Majeure event or ASRL Event of Default;
a. Unlawful repudiation of this Agreement by MoR including expropriation of
Project Assets by any Government Authority
b. Breakdown of any of the project related Agreements on account of MoR’s
default, rendering this agreement inoperable
c. Failure to pay ASRL the payment of its share of revenue, for the haulage of
freight on the project Railway within a period of 20 days
d. A material breach of its obligations under the provisions of this agreement by
MoR (Clause 7.2)
Lenders Step in Rights: Notwithstanding anything to the contrary in the Concession

Agreement, the parties hereby agree that (i) upon the lenders recalling and demanding the
debt outstanding under the Financing Documents (following an event of default under the
Financing Documents) or (ii) upon a termination Notice being issued by MoR, the lenders
shall, without prejudice to any other remedy available to them, have the option to propose
to MoR the substitution of the Concessionaire by another suitable Concessionaire . Any such
proposal shall contain sufficient details, all the relevant information about the Proposed
Concessionaire and the terms & conditions of the substitution (Clause 7.4)
Transfer payment on normal transfer: On completion of concession period, MOR shall pay
to ASRL an amount equal to Book Value of the assets as on that date. The existing assets
leased to ASRL by MOR shall revert back to MOR.
MOR shall pay to ASRL an amount equal to cost of land, which was financed by ASRL at
the time acquisition of land without any interest. (Clause 8.1)
Payment on termination on Account of Concessioning Authority’s Event of default:

ASRL shall be entitled to receive and MoR shall pay the following transfer payment:
• 130% of Depreciated Replacement value (DRV) if the default occurs within 15
years of COD
• 120% of DRV if the default occurs after 15 years but within 25 years of COD
• 110% of DRV if the default occurs after 25 years of COD (Clause 8.2 )
Transfer payment on termination on Account of Concessionaire’s Event of Default: ASRL

shall be entitled to receive and MoR shall pay 50% of Book value as Transfer Payment
(Clause 8.3)
Leased Assets: In consideration of the premises aforesaid, and of the rent reserved and of
the covenants and agreements on the part of the Lessee to be observed and performed, the
Lessor. Does hereby lease unto the Lessee all the Existing Assets and the land to be newly
acquired together with all rights, easements and appurtenances thereto, to have and to hold,
for the duration of the Concession period (Schedule 1 Clause 2)
Terms of Lease: The term of the lease shall be co-terminus with the Concession period,
unless extended for a further period by the mutual agreement of the Parties (Schedule 1
Clause 3)
Lease Rent: The Lessee shall pay to the Lessor, an annual lease rental in respect of the Leased
Assets. This lease rental shall be payable in advance in single installment during first week
of January (Schedule 1 Clause 4).
4.5 Construction Agreement
The Construction Agreement between ASRL and RVNL has been executed on 24.04.2015 at
Bhubaneswar, Odisha. The key terms/scope of the construction agreement are as under:
4.6 Scope of Project
The scope of project railway includes performance and execution of all design, drawings,
engineering, procurement, construction and commissioning as per detailed/revised
estimates of project.
4.7 Acquisition of Land:
East Coast Railway, through the state government, shall acquire the land for construction of
the line from Budhapank (Angul) to Baghuapal (Sukinda) with due assistance from RVNL.
ASRL shall assist RVNL and East Coast Railway to expedite the land acquisition process and
liaison with all relevant authorities on priority basis.
[The company has informed that, entire Private and Govt. Land is acquired and they have
placed the request with state govt. for additional land required due to extension of railway
line. The additional land is envisaged to be acquired by Dec 2017]
4.8 Contract Value
RVNL shall undertake the entire works under this agreement as per revised estimate
approved by BOD of ASRL. In case of any unexpected increase in the cost of execution of the
works (by more than 10% of total cost of project railway, excluding the cost of works already
executed), before executing the same, RVNL shall take prior consent of ASRL. The excess
cost to be incurred shall form part of the “completion cost of the project” which will be the
total cost to be paid by ASRL to RVNL for executing the project railway.
Further, the above is excluding departmental charges of 5% and D&G charges of 8.75%.
4.9 Terms of Payment:
RVNL shall prepare and submit to ASRL at the end of each quarter, a statement showing up
to date expenditure incurred against the amount deposited along with copies of bills and
specifying the requirement of funds for the subsequent quarter with-in 15th of the month
following the quarter.
4.10 Operations & Maintenance Agreement
O&M Agreement shall be signed between ASRL and East Coast Railway (ECoR) before
completion of construction work / COD of the project.
4.11 Insurances:
RVNL is having obligations to obtain, maintain in force at the cost of ASRL during the
construction period all insurances in accordance with the provisions of construction
agreement and Good industry Practice.
The above insurance means that RVNL will obtain the insurance cover during the
construction of rail line. Hence it is proposed that ASRL will obtain requisite insurance cover
on completion of construction/ due date of insurance whichever is later.
4.12 Revenue Model:
The revenue model for the project is explained below:
The following companies are the beneficiaries/would be using the proposed rail line:-
- Orissa Sponge Iron Ltd

- Mahanadi Coal Fields
- Visa steel
- Maithan Ispat Ltd
- Patnaik Steels and Alloys Pvt. Ltd
- Jindal Steel and Power Ltd
- Bhushan Steels Limited
- BRG Iron and Steel
- Monnet Ispat and Energy Ltd
- Tata Steel
In the above mentioned list, Mahanadi Coal Fields have already given proposed traffic
projection i.e. annual contracted quantity of 13.7 million tones which would be transported
using the proposed line.(Copy of the letter is provided in annexure)
The above companies would be using the rail line for import/inward movement of raw
material required like iron ore, coal movement, chrome etc. and outward movement of
finished goods.
Revenue sharing, escalation and inflated freight is furnished below:

Annual Escalation in Freight rates assumed 0%
Revenue accruing to SPV (First 4 Yrs of operation) as per CA 100%
Revenue accruing to SPV (after 4 Yrs of operation) as per CA 80%
Inflated Km factor 1.0
The freight will be determined as per the rate chart issued by the Ministry of Railways vide
their circular from time to time. For undertaking the financial projections, we have
considered
The freight will be collected by East Coast Railways for entire route used by companies from
origin to destination. Further, the freight will be apportioned to ASRL for the length/KM of
line used on proposed project by the companies.
Annual line haul maintenance will be undertaken by East Coast Railways. The cost of line
haul maintenance is considered on the basis of past value.
4.13 APPROVALS/CLEARANCES
ASRL has initiated the process through RVNL for obtaining requisite permission/approvals
for the smooth implementation of the project.
The process for obtaining environmental clearance from the MoE&F, Govt of India is under
progress. Stage I clearance has been received on 24.09.2015. Stage II clearance is expected
in Oct 2017 tentatively.
The following are the list of approvals required and present status:
SN Item Description: Current Status as on date:

1. Traffic Surveys Approved by Railway Board (Ministry of Railways) in the Year
2. Reconnaissance Survey 1996-97.
3. Preliminary Survey
4. Final Location Survey
5. Plan & Drawings All plans & drawings have been approved by East Coast
Railway the approving agency for construction of work in the
field.
6. Detail Project Estimation of Detailed estimate for hard cost `.1202 crore has been
Cost and Construction sanctioned by the Board of Company in the year 2013 and
Schedule. construction schedule has also been finalised and approved.
The revised estimates will be approved in due course.
It is informed that, project is an ongoing project of railways; hence no special approvals are
needed from ministry.
Further, any necessary approvals required for the project under implementation, would be
obtained by RVNL in the name of ASRL.
4.14 IMPLEMENTATION SCHEDULE:
Particulars Expected time of Completion

Total Land - 1804acres(apx.) Mar'2018.(For additional Land only)
Formation Total Km.-103.601km Mar'2018.
Permanent Way Total Km. Mar'2019.
Bridge Works: Bridge Works:
Major Bridges: Major Bridges: - Oct'2018
Minor Bridges: Minor Bridges: -Jan'2018
ROBs: ROBs:-Mar'2019
RUBs RUBs:- Jan'2018
Stations, buildings and others Mar'2019
5.1 Project Cost:
Earlier the company envisaged development of rail line of 104.24 KM with a project cost of
` 1652.09 Crore. However, during 2016, the rail line was proposed to be extended from
104.24 KM to 113.395 KM to aid the congestion free movement on both ends of the line.
Accordingly, Company will be undertaking construction of 113.395 KM. The revised

project cost is furnished below:
(` in Crore)
Description of Work Earlier As per Present
IM Nov 2015 Revision
Land Cost 100.00 150.00
Preliminary Expenses 3.56 2.97
Formation 257.06 242.56
Permanent Way 249.13 280.01
Bridge Work 419.76 424.16
Stations, Building and Others 64.04 71.98
Plant and Machinery 2.02 2.27
Total Civil Works 1095.57 1023.95
Signaling & Telecommunications Engineering 53.19 59.79
Electrical Engineering 132.71 149.16
Gross Total 1281.47 1382.89
Contingencies @ 3% 38.44 41.49
Sub Total “A” 1319.92 1424.38
Direction & General Charges @ 8.75% of “A” 115.49 124.63
Sub Total “B” 1507.18 1549.01
RVNL Charges @ 5% on “B” 71.77 77.45
Pre-operative expenses 6.00 6.00
Interest During Construction 82.09 76.61
DSRA 56.81 53.78
Grand Total 1652.09 1762.86
The proposed means of finance is as under:

(` in Crore)
Particulars Earlier Present
As Per IM- Nov 2015 Revision
Equity 600.00 600.00
Debt 1052.09 1162.86
Total 1652.09 1762.86
The project cost is estimated as per the data provided by the company which in turn is the
estimate provided by Rail Vikas Nigam Ltd (RVNL) – major share holder- cum- construction
contractor.
The revised project cost is considered as per the data provided by RVNL to the company
during November 2016.
5.2 Land Cost:
The total land required for the project is 1779.186 acres, out of which Government land is
219.145 acres, forest land is 360.96 acres and balance is private land of 1199.081 acres.
As there is requirement of additional land for undertaking the changes like Y section and
flyover to be constructed at the end of line which is meeting existing rail lines (diagram is
shown in para 4.14), the company has approached with additional land demand to State
Govt. of Odisha for 3.165 acres of Govt. Land and 24.898 acres of private land for the project.
The total cost of the land acquisition estimated by RVNL is ` 150.00 Crore. The land
acquisition work has been entrusted to East Coast Railway through Odisha State Govt.
agency.
State Govt. has handed over entire private land and accorded permission to company to
undertake construction work on Govt. land. Accordingly, Company/RVNL has commenced
the construction work.
The present status of the land acquisition and works undertaken is furnished below:
Particulars Requirements Status
Govt. Land Required land 219.145 acres Acquired full
Possession has been given by State Govt.
Lease deeds for 110 acres have been submitted for

registration and balance is under process.
However, construction works are in progress for
entire patches/land parcel
Additional land : 3.165 acres Additional demand of 3.165 acres has been
placed with the state Govt., which is expected to
be allotted by March 2018.
Private Land Original land : 1199.081 acres Acquired full
Additional : 24.898 acres Additional demand of 24.898 acres has been

placed with State Govt., which is expected to be
acquired by March 2018.
Particulars Requirements Status
Forest Land Required Land – 251.06 acres ( Hal Stage I clearance received on 24.09.2015. Working
settlement) + 109.9 acres ( Sabik permission issued by DFOs on 13.01.2016 and
Settlement) tree felling by OFDC in forest/PVT/Govt. land
under Cuttack & Dhenkanal forest Division are
in progress(95%) completed. Construction Work
has been taken up on the entire forest land.
Stage-II clearance of forest land is in advance stage of

approval and company is hopeful of receiving the same
by Oct 2017 tentatively.
5.3 Civil Works:
The civil works include excavation, earthwork, construction of buildings for station and
quarters etc. The cost of civil work estimated by RVNL is as under:
(` in Crore)
Particulars Amount
Formation 242.56
Permanent Way 280.01
Bridge Work 424.16
Station, Buildings and Others 71.98
Plant and Machinery 2.27
Total 1023.95
The break up details of the entire stretch of 113.395 km of railway line are as under:
Route Start End Total length (KM)

Budhapank – Budhapank Station Kamalanga Yard 3.177
Kamalanga
Budhapank- Budhapank Station Kamalanga Yard 6.654
kamalanga line via
flyover
Angul – Sukinda – Talcher station Baghuapal Yard 5.131 &
Baghuapal main line 88.639
via flyover
Sub Total 103.601
Y leg Mid section of main Mid section of Ext 3.732
line DN main of Jaroli
Talcher – Kamalanga Mid section of UP line Kamalanga Yard 6.062
(Talcher station)
Total 113.395
5.4 Preliminary Expenses:
Preliminary expenses include Sub-soil exploration i.e. collecting soil samples, conducting
field test and laboratory test along with alignment for foundation of Major Bridges (0.5% of
Cost of Formation & Bridges), initial survey including compass traverse along alternative
route, Pegging out of alignment etc.
5.5 Formation:
The surface is being prepared to receive the ballast sleepers, rail etc, for constructing the
railway track is termed as formation or subgrade.
Formation involves development of 6.85 M width with earth/soil brought from outside
Railway land. It will have 1.00 M thick blanketing on top with side slopes having horizontal
/vertical ratio of 2:1.
The cost for formation for entire length has been estimated at ` 242.56 Crore based on the
rate estimation by RVNL taking into account standard BOQ items.
5.6 Permanent Way:
The following are the components of permanent way or a Railway tack:

- Formation/sub grade
- Ballast
- Sleepers
- Rails
- Fixture and fastenings
5.7 Bridge Work:
Proposed project includes 14 no of major bridges, 147 nos of minor bridges, 23 mo of Railway
over Bridges, 35 nos of Railway under bridges and a flyover bridge.
Presently tenders for certain bridges have been floated and awarded contract and remaining
are under process of tendering.
The bridge no. 12 over river Brahmani is having a total length of around 960 meters which
the major bridge and the bridge is in advanced stage of completion.
Heavy Mineral Loading Standard with 30T axle load has been adopted for all the Railway
Bridges. Two bridges, Br. No. 2 and 6 are having two parallel girders on common abutments.
Bridges with span of more than 24.40 metres have been provided with steel super structure.
Allotment of contracts/tenders for bridge completion works are under process.
5.8 Station, Buildings And Others:
It includes offices, station buildings, workshop stores, residential buildings and other
infrastructure relating to staff welfare.
5.9 Office (Station Buildings):
Initially 8 nos of stations were proposed. However, the same were increased to 9 stations.
Necessary provision has been made for accommodation to staff/ officers at respective
stations.
One health unit has been proposed at Kamakhaya Nagar.
9 nos. of station buildings including platform shelter, signal cabin, platform and other
passenger/goods movement amenity works have been included in the estimate. Facilities
have been provided at each station for passengers/goods movement. All the station
buildings proposed for Class-III type are suitable for interlocking. The station building
involve work of platform, RCC platform fencing, Foot Over Bridge, water booths, water
supply, tube wells, road work, gate lodge platform benches, DG Room etc.
5.10 Residential Building and Staff Quarter:
Total 230 units/ quarters have been proposed, out of above 195 units will be Type-II, 30
units of Type-III, 4 units of Type-IV and 1 unit of Type-V. One Officers Residential Houses
and Staff Residential Houses have also been proposed at Kamakhaya Nagar. The quarters
are proposed in different locations.
5.11 Plant and Machinery:
Plant and machinery includes DG sets/other equipments to be used during the construction
etc. The plant and machinery cost is assumed at ` 2.27 Crore.
Civil work for construction of some bridges work has already been awarded by RVNL to sub
contractors and work relating to other are under process of allotment.
5.12 Signaling & Telecommunications (S&T):
5.13 The signaling and telecommunication works includes installation of solid state interlocking,
DC track circuits, LC gate, Telecom facility, modification in existing route relay interlocking
with MACL (Multiple Aspect Colour Light) signaling motor operated points with DC track
circuits.
The description of S&T works include the following:
S. No Description Description
1 Interlocking Std-III : 09 (New Stations)
Std-III :02 (Existing Stations)
2 Operating of Motor Operation : 09 (New Stations ) + 02 (Existing Stations)
Points
3 Signals LED Colour Light : 09 (New Stations ) + 02 (Existing Stations)
4 Block Working TLBT with SSDAC (single section digital axle converter) : 10
Block Sections
5 Communication 1) Optical Fibre Capital for Control, administrative purposes
OFC and 6 Quad and 6 quad cables for emergency, communication and block
Cable working : 09+02 stations
2) Radio Patching : Between Talcher and Kamakhyanagar
6 Electric Traction Overhead equipment, traction, sub-stations, SCADA
(Supervisory control and data acquisition system), switching
Stations and feeding post
The total cost of Signaling & Telecommunications has been estimated at ` 59.79 Crore.
The contract for track linking, Signaling and OHE (over head electrical) is proposed to be
awarded on completion of 40% of civil works.
5.14 Electrical Engineering & Over Head Expenses:
The electrical engineering works constitute Traction Distribution Works, Over head
Equipment for running trains, traction sub stations, etc. The detailed description of
electrical engineering & OHE include:
S. No Description Details
1 Traction Sub-Station 02 Nos.
2 Sectioning & Paralleling Post (SP) 03 Nos.
3 Sub-Sectioning & Paralleling Post (SSP) 06 Nos.
4 OHE & PSI Depth with Tower Car at 02 Nos.
Sukinda and Kamakhyanagar
5 11 Kv Sub-Stations at all stations 08 Nos.
The Electrical Engineering and OHE cost has been estimated at ` 149.16 Crore.
5.15 Contingencies:
Contingency @ 3% has been assumed on total cost of civil engineering and Signalling and
telecommunications and electrical engineering. It is pertinent to mention that 3% of capital
cost based on standard norms is being followed in railways. The same works out to ` 41.49
Crore.
5.16 D & G Charges:
D & G charges (direction and general charges) are payable to RVNL by way of management
fee on the basis of annual expenditure incurred by RVNL for execution of various projects
assigned to them by MoR. The charges payable in case of different projects are as under:
• 9.25% for Metro Projects

• 8.5% for other plan heads
• 10% for national projects
As the proposed project falls within the ambit of other plan heads, 8.5% for other plan heads
is considered. The charges are calculated on hard cost.
Further, RVNL is allocating a maximum of 0.25% of the cost of projects to Zonal Railways
(East Coast railways in the proposed projects). Accordingly D&G charges will be @ 8.75%
as per the “other plan head”. The total cost works out to ` 124.63 Crore.
5.17 RVNL Charges:
RVNL is charging fee @ 5% of the project cost to the company as premium payable to RVNL
on account of work to be undertaken by them. An agreement is proposed to be executed
between the company and RVNL as departmental fee on cost incurred. Considering project
cost as mentioned above charges payable to RVNL are estimated at `
77.45 Crore, provision for the RVNL fee has been made in the cost of project.
5.18 Pre-operative Cost:
Amount incurred towards formation of company, authority charges paid, and other
expenses related to feasibility study & detailed project report are representing the cost. The
expenses are estimated at ` 6.00 Crore.
5.19 Interest During Construction (IDC):
Interest During Construction has been estimated at ` 76.61 Crore based on drawdown
schedule of Project Loan. The drawdown has been modified as per the latest drawdown
schedule proposed by the company and drawdown of term loan may commence from 3rd
quarter of FY 2017-18 and terminate during 1st quarter of FY 2019-20. The rate of interest
has been assumed at Canara Bank 1 year MCLR + 0.85% i.e. presently 9.25% p.a.
5.20 Debt Service Reserve Account (DSRA):
Debt Service Reserve Account is created to an amount equivalent to the ensuing two quarters
of interest and principal obligations towards Project loan. The funds for the initial 2 quarter
period on COD works out to ` 53.78 Crore. The same has been considered part of the project
cost.
5.21 Latest physical progress of the work is furnished below:
Particulars Total work to be taken up Status

Formation 103.601km Formation work in 80km out
of 103.601km is in progress.
Permanent way 103.601 Yet to start. Likely to
commence from Mar'2018.
Bridge work Total Major Bridges: 14 Major Bridges in progress: 08.
Total Minor Bridges in
Total Minor Bridges: 147 progress: 90
Total ROBs in progress: 05
Total ROBs: 23 Total RUBs in progress: 08
Total RUBs: 35 Fly over Bridge in progress:
Fly over Bridge : 01 work yet to commence.
Stations, buildings 09 & 02 Junction Stations, Tender is under finalization.
and others 09 Station Buildings, Work to commence from
Type-V-01unit Jan'2018.
Type-IV-04units
Type-III-26units
Type-II-170units
Level Crossings- 13(Manned)
LC Goomties- 13nos.
Area/Amount (Apx)-
Building - 15000sqm/Rs.20crore
The latest physical progress as on 31.07.2017 is approx. 34% as informed by the company.
5.22MEANS OF FINANCE
The cost of project is proposed to be funded as under :
Particulars Amount in Crore

Equity 600.00
Debt 1162.86
Total Project Cost 1762.86
With the above funding structure, promoter contribution to the project is ` 34.04% and
Debt: Equity ratio is 1.94.
The company proposed upfront infusion of their contribution ` 600.00 Crore by way of
equity through share holders. Presently the promoters contribution is already brought in as
under:
Particulars Amount in Crore

Railway Vikas Nigam Limited 189.00
Container Corporation of India 156.00
Government of Odisha 127.80
Odisha Mining Corporation 63.00
Jindal Steel and Power Ltd 60.00
IDCO 4.20
Total 600.00
For debt component of ` 1162.86 Crore, the company has approached Bank for syndication
of Term Loan from Banks/FIs
The company has expended an amount of approx. ` 407.29 Crore as on 30.06.2017 towards
the project as per the data provided by company.
6. TRAFFIC ASSESSMENT
The Project section links Jakhapura-Banspani line with Cuttack-Angul-Sambalpur line. The
Project is expected to cater to iron ore traffic from Joda-Barbil region and coal traffic from
Talcher region to consumer industries in the hinterland.
An initial traffic and bankability study for the project was carried out by Price Waterhouse
Coopers in the year 2006. In order to update the traffic forecast for the Angul-Sukinda rail
link in light of the development of changed economic scenario, M/s Feedback Infra (P)
Limited, with a team comprising of experts in railway sector, were appointed as traffic
consultant to assess the traffic volume.
Based on the traffic analysis has been carried out by M/s Feedback Infra (P) Ltd, the
company with the latest available data with East Cost Railway, RVL have revised the traffic
to be assumed for undertaking traffic for the projections.
6.1 The Alignment
The proposed rail link is between Budhapankha station and Baghuapal station in the state
of Odisha. The map below represents the proposed project section.
6.2 Commodities identified as primary Cargo
Following are the major traffic drivers near the proposed railway line between Budhapank
and Sukinda Road Stations.
A preliminary location analysis of the project catchment area reveals that there are,
primarily, four major activity regions along with two ports that may have an impact on the
project stretch traffic. These include:
• Talcher coal fields and surrounding activity
• Banspani-Barbil Iron Ore mines and surrounding activity
• Steel Plants in proximity to Sukinda
• Power & Steel Plants in and around Angul
• Dhamra and Paradeep Ports
Movement of traffic, sectorwise is estimated as below:
a) Coal Movement
o Talcher to Sambalpur/Jharsuguda
o Talcher to Sukinda
o Talcher to Banspani-Barbil
o Talcher to Dhamra
b) Iron ore Movement

o Banspani-Barbil to Sambalpur/Jharsuguda
o Banspani-Barbil to Angul/Talcher
o Banspani-Barbil to Sukinda
c) Finished Iron & Steel Products:

o Angul to Eastern India
o Sukinda to Northern, Central and Western India
o Angul to Paradeep Port
o Angul to Dhamra Port
o Sukinda to Dhamra Port
o Banspani-Barbil to Dhamra Port
6.3 Hinterland & Cargo clusters
For assessment of potential traffic for the project line, the Consultants have adopted a
‘location & distance’ centric approach towards traffic calculation. The process, broadly,
comprises of assessing the potential traffic for the project stretch based upon a detailed
location and distance analysis of existing and upcoming traffic drivers in the region.
It also includes a comparative analysis with other rail lines in the region, expected to be in
direct competition with the project line to establish the effective catchment of the rail line
and eventually lead to a realistic assessment of traffic.
Traffic on the project line will, primarily, comprise of input resources and outputs of various
Iron & Steel and Thermal Power Plants in the region.
As per traffic analysis conducted earlier, RTCs (rail traffic controllers) have been granted to
about 24 plants, in the region, by the Zonal Railway for loading and unloading of goods in
the vicinity of stations.
All such plants having influence on the project stretch was analyzed based on their annual
capacity, traffic movement and current status of the plant. Analysis was carried out by traffic
consultants to establish the most feasible route for commodity movement for each of these
plants. This has finally led to identification of traffic streams that are likely to get diverted,
from other competing routes in the region, to the project line. As a result of this, traffic to or
from the following plants is likely to use the subject rail line for movement of commodities:
Possible Traffic Generators for the Project Line:

(Capacity MTPA)
S.No. Name of Plant Location of Plant Expected Traffic
1 BRG Iron & Steel Meramandali 0.60
2 Jindal Steel & Power Limited# Kerejanga 6.0
3 VISA Steel Limited Jakhapura 1.5
4 Jindal Stainless Limited Jakhapura 1.75
5 Patnaik Steels and Alloys Pvt. Ltd. Nayagarh 0.27
6 Maithan Ispat Ltd. Jakhapura 0.2
7 Tata Steel Ltd. Kalingnagar 3.0
8 MGM Steels Limited Meramandali 0.3
9 Monnet Ispat & Energy Ltd. Kerejanga 1.0
10 Odisha Sponge Iron Ltd. Poranjpur 0.35
11 Sree Metaliks Limited Kerejanga 0.25
12 Mahanandi Coal Fields Talcher 39.2
#is the share holder in the ASRL
Company has recently revised the same with the latest available data with East Coast
Railway
6.4 Jindal Steel & Power Ltd.
Jindal Steel and Power Limited (JSPL) is setting up a 6 MTPA integrated steel plant with
captive power plant of capacity 1142 MW at Kerejanga (District Angul) in Odisha. The
project would be executed in three phases. In phase 1, the steel plant will commence
operation with 1.5 MTPA steel production capacity followed by capacity addition of 4.5
MTPA in phase 2. The company also has plans to add another 3 MTPA steel production
capacity in phase 3. The company has further plans to increase the capacity from 9 MT to
12.5 MTPA in due course.
On completion of project, it would require substantial amount of raw material including Iron
Ore, Coal, Coke, Limestone, etc. The finished steel products are expected to be transported
for domestic consumption to destination in Eastern, Southern, Western, Northern and
Central India
The rail-relevant traffic streams (along with the expected capacity for each stream) for the
said industry are as follows:
Origin –Destination based Traffic Streams for Jindal Steel & Power Ltd:
Commodity Origin Destination
Iron Ore Fines Deojhar Kerejanga

Iron Ore Lumps Deojhar Kerejanga
Imported Coking Coal Paradip Port Kerejanga
Imported Coking Coal VSKP Kerejanga
Non Coking Coal Bilaspur Kerejanga
Non Coking Coal Jhaesuguda Kerejanga
Non Coking Coal for Coal Washery Paradip Port Kerejanga
Non Coking Coal for Coal Washery VSKP Kerejanga
Non Coking Coal for Coal Washery Bilaspur Kerejanga
Non Coking Coal for Coal Washery Jharsuguda Kerejanga
Raw Dolomite and Dolomite Fine Rajasthan Kerejanga
Lime stone and lime stone fines Rajasthan Kerejanga
Lime stone and lime stone fines Jamshedpur Kerejanga
Quartize Rajasthan Kerejanga
Misc, Flux & Ferro alloy Rajasthan Kerejanga
Steel Kerejanga Various destinations
From the above traffic, the quantity of traffic that is expected to be routed through project
line are as under:
Origin-Destination based Divertible Traffic on the project line for Jindal Steel & Power Ltd:
Project
Name of Foreign Traffic
Commodity Origin Destination Route Total Km
Generator Route Km assumed
Km
Outward
Jindal Steel & Various
Steel Kerejanga 103.061 161.78 266.02 1.2
Power Destinations
Inward
Jindal Steel &
Iron Ore Fines Deojhar Kerejanga 103.061 253.54 357.78 7.06
Power
Jindal Steel &
Iron Ore Lumps Deojhar Kerejanga 103.061 253.54 357.78 3.75
Power
6.5 Bhushan Steel Limited (BSL)
Bhushan Steel Ltd is a steel producing company having steel production capacity of 5.6
million ton per annum.
The company has announced project at Meramandali Plant (1.5 MT) which is engaged in
production of Directly Reduced Iron (DRI) - Electric Arc Furnace (EAF), Blast Furnace –
Ladle Furnace & RH-OB process- continuous casting – rolling mill route with waste heat
recovery based captive power plant (CPP). Plant is situated 5 km away from Meramanadali
Railway Stations (on Angul – Cuttack broad gauze main railway line). The National Highway
no. 42 touches northern side of plant. The plant is 18 km away from Angul and 42 km from
Dhenkanal. Nearest Railway station is Meramandali on East coast railway and nearest port
is Paradip, which is more than 215 km away. Plant has got Rail siding.
Bhushan steel would be the major beneficiary of upcoming line with its inbound traffic (coal
and iron ore) using the proposed line.
The rail-relevant traffic streams (along with the projected traffic for each stream) for the
plant are as under :

Coal Talcher Maermandali
Steam Coal Talcher Maermandali
I/Ore Banspani Maermandali
I/Ore (BF Grade) Banspani Maermandali
I/Ore (Finer) Banspani Maermandali
Lime Stone Satna Maermandali
Lime Stone Paradeep Maermandali
Coking Coal for BF Paradeep Maermandali
Coking Coal for BF Haldia Maermandali
Coal for CDI-BF Paradeep Maermandali
Dolomite – SP Bhardawar Maermandali
Semi finished Maermandali Howrah
Finished products Maermandali New Delhi
Finished products Maermandali Chandigarh
Finished products Maermandali Mumbai
Finished products Maermandali Chennai
Finished products Maermandali Haldia
Finished products Maermandali Paradip
line are as under:
Project Foreign Traffic

Name of Generator Commodity Origin Destination Total Km
Route Km Route Km assumed
Outward
Finished
Bhushan Steel Ltd Products, Billets Meramandali Haldia 103.061 359.96 464.2 1.01
Rolled Products
Inward
Bhushan Steel Ltd I/Ore Banspani Meramandali 103.061 217.75 321.99 6.06
Coking Coal for
Bhushan Steel Ltd Haldia Meramandali 103.061 359.96 464.2 1.00
BF
National Company Law Tribunal (NCLT) New Delhi Principle Bench vide order dated
26.07.2017 has admitted the reference for initiation of Corporate Insolvency resolution
process under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Bhushan Steel
on the basis of bankruptcy petitions filed by Lenders. The company is now under the
provisions of IBC. (Source:BSE)
As per the information available in public domain, some of the investment firms, steel
players have shown interest in buying stake of Bhushan steel. However, the company will
have to proceed further based on the resolution plan to be proposed by Interim Resolution
Professional already appointed by NCLT.
As per the traffic assumptions provided by the company, 15% traffic out of the total traffic is
envisaged from Bhushan Steel. Without taking into account the traffic assumed from
Bhushan Steel, the overall DSCR works out to 1.60 indicating adequacy of debt
serviceability.
6.6 Jindal Stainless Limited
Jindal Stainless Limited, has its manufacturing facility located at Kalinganagar. The plant
has current production capacity of 1.6 Million tones. Iron ore requirement is met by
Banspani area and coke is imported via Paradip port. The plant comprises of 250,000 tons
per annum of Ferro Alloy’s facilities and 1 MTPA of stainless steel making facilities with
state-of-the-art technology. This complex with captive power generation is scalable up to
3.2 million tons per annum of stainless steel making.
The plant is well connected by the Road (connectivity through NH-5) & Railway (Dubri-
Banspani rail line) and is located within 150 kms from the mines and shipping port.
The rail-relevant traffic streams (along with the projected traffic for each stream) for the
said industry are as follows:
Coke Paradeep Kalinga nagar

Iron Ore Banspani Kalinga nagar
Lime/Dolomite Satna Kalinga nagar
Lime/Dolomite Birmitrapur Kalinga nagar
DRI Koenjhar, Joda Kalinga nagar
Cast Stainless Kalinga nagar Domestic
Market
Cast Stainless Kalinga nagar Paradeep
Hot/Cold Rolled Products Kalinga nagar Paradeep
Hot/Cold Rolled Products Kalinga nagar Domestic
Market
Cold Pigs Kalinga nagar Kolkata
Cold Pigs Kalinga nagar North
Ferro Chrome, Coke Breeze Kalinga nagar Hissar
line are as under:

Cast stainless Kalinga Nagar Domestic Market
Hot/cold Rolled products Kalinga Nagar Domestic Market
6.7 Tata Steel Ltd
Tata Steel is setting up a 6 MTPA integrated steel plant at Kalinganagar Industrial Complex
at Duburi, in the Jajpur district. The Steel Works will be established in two modules of 3
MTPA of steel each and on completion, will have a capacity of 6 MTPA.
The traffic stream for the plant is as follows:

Iron Ore Banspani Kalinganagar
Iron ore Nayagarh Kalinganagar
Thermal Coal Dhamra Kalinganagar
Thermal Coal Domestic Coal Kalinganagar
mines
Coal Dhamra Kalinganagar
Coal Barkakhana Kalinganagar
Limestone Dhamra Kalinganagar
Steel(Coil, HR,CR) Kalinganagar Dhamra
Steel(Coil, HR, CR) Kalinganagar NGP
Steel(Coil, HR,CR) Kalinganagar GZB
Steel(Coil,HR, CR) Kalinganagar Bangalore
Steel(Coil,HR,CR) Kalinganagar Kolkata
Slag Kalinganagar Central India
line are as under:
Project
Name of Foreign Total Traffic
Commodity Origin Destination Route
Generator Route Km Km assumed
Km
Outward
Cement
Tata Steel Slag Kalinganagar Plants in 103.061 1174 1278.24 0.20
Central India
Inward
Kalinga
Tata Steel Iron Ore Joda 10 305.83 315.83 17.14
Nagar
Tata is currently sourcing its Coal for Barkakhana coal fields where they have their own
captive mines.
In near future plant envisage to source its coal from Talcher Coal Fields. The coal will be
transported through the proposed project line. Thus, consultants have taken the Coal traffic
in their optimistic scenario, which is as follow:
6.8 MAHANADI COAL FIELDS (MCL)
There is an outward movement of about 28 rakes per day from MCL. The company plans to
upgrade the rail loading capacity to 60 rakes per day by installing silos. Out of the 28
outward rakes, approximately 14 are being transported to Paradip (11) and Dhamra (2~3)
Ports for coastal shipping to various parts of India.
Some of the important coastal shipping destinations are Mundra and Tuticorin. The
difference in movement to both the ports is primarily because unlike Paradip Port, Dhamra
Port does not have the facility to work with the bottom discharge BOBRN- Bogie Open
Bottom Rapid Discharge (railway wagon) that result in faster unloading of wagons.
Existing Rack movement from MCL:

Coal Talcher Dhamra
Coal Talcher Paradeep
Coal Talcher Other
Existing traffic movement of MCL
Company Commodity Origin Destination

Mahanadi Coal Talcher Dhamra
Coal Fields
Mahanadi Coal Talcher Paradeep
Coal Fields
Mahanadi Coal Talcher Other
Coal Fields
line are as under:
Project
Name of Foreign Traffic
Commodity Origin Destination Route Total Km
Generator Route Km assumed
Km
Outward
Mahanadi Coal
Coal Talcher Dhamra 103.061 140.22 244.46 17.90
Fields
Paradip port is currently handling 23 MT coal and envisage to expand its coal handling
capacity to approximately 30MT per year. The traffic projections of Paradip Port are as
under:
Traffic Projection as on March 2012 of Paradip Port (in Million Tonnes):
Year (FY) POL Iron Ore Coal Container Other Cargoes Total
2008 1.74 12.95 18.08 0.05 9.62 42.44
2009 3.24 14.27 20.16 0.03 8.71 46.41
2010 6 15.55 24.97 0.3 9.48 56.3
2011 10.7 17 23 0.3 11 62
2012 13 22 23 0.5 11.5 70
2017 30 25 30 1 14 100
6.9 CONNECTIVITY
The traffic consultant has carried out a detailed study about movement of various
commodities and following are observations:
• Coal Movement:
o Talcher to Sambalpur/Jharsuguda: it cover movement of coal for the following

corporates:
▪ Bhushan Ltd (Lapanga)
▪ SMC Power Generation Ltd (Brundamal)
▪ Aryan Ispat & Power Ltd (Lapanga)
▪ Viraj Steel & Energy (Rengali)
▪ Shyam DRI Power (Rengali)
Considering, the fact this movement is in the opposite direction to the project stretch,
these plants may not influence the traffic on the project stretch.
o Talcher to Sukinda: Coal movement from Talcher to Sukinda is for Maithan Ispat
(Jakhapura), Jindal Stainless Ltd (Jakhapura), VISA Industries (Jakhapura) and
Tata Steel (Kalinganagar). The consultants expect significant portion of this traffic
to move on the project line.
o Talcher to Banspani-Barbil: Talcher to Banspani movement feeds to the coal
requirement of various Iron & Steel Plants located in the Iron Ore belt. These include
Uttam Galva Steels (Porjanpur), Odisha Sponge Iron Ltd (Porjanpur), Patnaik Steels
& Alloys Ltd (Nayagarh). The shortest route for this movement is Talcher-Sukinda-
Banspani and, therefore, this traffic is expected to move on the project stretch.
o Talcher to Dhamra: Movement of Coal from Mahanadi Coal Fields, Talcher for power
houses in Southern and Western India via coastal shipping takes place through
Dhamra port and Paradip Port. Presently this traffic is moving to Paradip and
Dhamra port via via Rajatgarh, Cuttack, however the rail link from Talcher to
Dhamra port via the proposed project line will be shorter by 32 Kms. Thus, this coal
traffic from Talcher for Dhamra port is expected to move on the project line.
• Iron Ore Movement:
o Banspani-Barbil to Sambalpur/Jharsuguda: It is a routine movement of Iron Ore to

Steel Plant located in and around Jharsuguda. Presently movement of Iron-Ore is
from Banspani to Lapanga/Rengali is via Bondamunda and Jharsuguda. The
consultants expect the movement pattern to continue in future as well. This traffic
therefore, is not expected to have any impact on the project stretch.
o Banspani-Barbil to Angul/Talcher: Banspani to Angul traffic relate to movement of
Iron Ore requirement of various Steel Plants located in and around Angul. It include
the following plants:
▪ Bhushan Steel Ltd (Meramandali)

▪ BRG Iron & Steel (Meramandali)
▪ Monnet Ispat & Energy (Kerejanga)
▪ Sree Metaliks (Kerejanga)
▪ MGM Steels (Meramandali)
▪ Jindal Steel & Power (Kerejanga)
Significant business is expected through this section.
• Banspani-Barbil to Sukinda: It involve movement of Iron Ore to steel plants in and around
Sukinda. Considering that the movement is outside the immediate catchment of the
project line, it is unlikely that this will have any impact on the project traffic.
• Finished Iron & Steel Products:
o Angul to Paradeep Port, Sukinda to Dhamra Port & Banspani to Dhamra Port: All
the three Origin Destination pairs involves movement which are not aligned with the
project line. The consultants, therefore, do not expect any influence to project stretch
traffic.
o Angul to Dhamra Port: It involve shipment relating to export of finished iron & steel
products originating at various steel plants in Angul region. Since it is a feasible
route, the consultants expect significant portion of this traffic to move on the project
line.
6.10 Impact Of Competing Facility
Proposed Angul Sukinda new railway line connects Banspani-Daitari line (which caters to
export iron ore traffic from Joda-Barbil region and Import traffic from Dhamra and Paradip
Ports) with Cuttack-Sambalpur line (which caters to coal traffic from Talcher region
destinaed to various parts of the country by coastal shipping via Paradip Port).
Due to severe capacity constraints on Chennai-Visakhapatnam-Cuttack-Kolkata line

(especially on Barang-Cuttack section) coal traffic currentaly takite Dhenkanal-Cuttack-
Paradip may shift to Angul-Sukinda and Haridaspur-Paradip lines (both lines under
construction). However, ongoing improvements on Cuttack-Barang section might ease the
capacity constraints currently faced by coal traffic from Angul.
Apart from coal traffic destined to Paradip port, Angul Sukinda line becomes the shortest
route for iron ore traffic from Joda-Barbil region and coal traffic from Talcher region. Hence
no competing facility may affect the estimated traffic on the Project line.
6.11 Infrastructure Capacity Analysis
6.12 Coal Traffic
According to Ministry of Coal, the state of Odisha has coal reserves of 71,447 Million Tons
which includes 25,547 MT of proved reserves, 36,465 Tons of indicated reserves. The state’s
coal reserves are divided mainly between two regions viz. IB valley and Talcher coalfields.
According to Geological Survey of India, Talcher coalfields accounts for more than 60% of
Odisha’s coal reserves.
Apart from catering to primary hinterland consumers in Sukinda and Joda-Barbil region,
proposed project will cater to the demand from various thermal power plants being
developed across the country (through coastal shipping from Paradip and Dhamra ports)
6.13 Iron ore Traffic
According to Odisha mining department, the state accounts for 32% Iron ore, 24% coal, 59%
Bauxite and 98% Chromite of India's total deposits. Odisha’s iron ore is known for high
quality iron content.
Due to various initiatives taken by State Government, many national and international
corporates have shown interest to setup manufacturing steel plants in Angul-Sukinda
region. Proposed Angul-Sukinda railway line will cater to incoming traffic (Iron ore) apart
from Outgoing traffic (finished goods) destinaed to various parts of India, especially the
Eastern region which includes Bihar, West Bengal, Jharkhand and North-Eastern states.
6.14 Dharma Port
Proposed Project line is expected to cater to the coal traffic destined to various parts of the
country via Coastal shipping from Dhamra port. Dhamra port is a 50:50 Joint Venture
between Larsen & Toubro and TATA steel. Known as one of the deep draft ports in the
country, the port started commercial operations in May 2011. Currently the port has two
fully mechanized berths of 350 meters each along with backup facilities for handling imports
of coking coal, steam/thermal coal, limestone and export of iron ore. The company also
constructed 62 kilometers rail link from Dhamra to Bhadrak to provide evacuation by
railway mode.
The master plan of the Port envisages 15 berths, capable of handling more than 100 Million
Tons per annum of dry bulk, liquid bulk, break bulk, containerized and general cargo,
making Dhamra one of the largest ports in the country. Proposed Angul Sukinda project line
is expected to cater the growing coal demand (thermal coal meant for coastal shipping and
imported coking for steel industries) through Dhamra port
6.15 Paradip Port
Paradip port is one of the major ports under Central government catering mainly to
mineral and industrial traffic. The port’s hinterland extends to the states of Odisha,
Jharkhand, Chhattisgarh, West Bengal, Madhya Pradesh and Bihar. Currently the port is
undertaking various capacity expansion projects in order to accommodate larger vessels and
to cater to increasing demand from consumers. Major ongoing/proposed infrastructure
projects of the port include:
▪ Deepening of existing entrance and approach Channel to handle 1,25,000 DWT vessels
▪ Development of Deep draught Iron Ore berth on BOT basis of 10 MTPA Capacity
▪ Development of Deep Draught Coal Berth on BOT basis of 10 MTPA Capacity
▪ Development of Multipurpose berth to handle clean cargo including Containers on BOT
basis with 5MTPA capacity
▪ Mechanization of general cargo berths
The traffic expected on the proposed line is furnished below:
Project
S. Name of Foreign Total Traffic
Commodity Origin Destination Route
No Generator Route Km Km assumed
Km
Outward
Jindal Steel & Various
1 Steel Kerejanga 103.061 161.78 266.02 1.20
Power Destinations
Finished
Bhushan Steel Meramanda
2 Products, Billets Haldia 103.061 359.96 464.20 1.01
Ltd li
Rolled Products
Mahanadi Coal
3 Coal Talcher Dhamra 103.061 140.22 244.46 17.90
Fields
Kalinga Domestic
4 Jindal Stainless Cast stainless 103.061 299.49 403.73 0.14
Nagar Market
Hot/cold Kalinga Domestic
Jindal Stainless 103.061 299.49 403.73 0.23
Rolled products Nagar Market
Cement
5 Tata Steel Slag Kalinganagar Plants in 103.061 1174.00 1278.24 0.20
Central India
Inward
Jindal Steel &
6 Iron Ore Fines Deojhar Kerejanga 103.061 253.54 357.78 7.06
Power
Jindal Steel &
Iron Ore Lumps Deojhar Kerejanga 103.061 253.54 357.78 3.75
Power
Bhushan Steel
7 I/Ore Banspani Meramandali 103.061 217.75 321.99 6.06
Ltd
Bhushan Steel Coking Coal for
Haldia Meramandali 103.061 359.96 464.20 1.00
Ltd BF
Kalinga
8 Tata Steel Iron Ore Joda 10.00 305.83 315.83 17.14
Nagar
Total 55.69
The revenues in financial projections are drawn taking into consideration the traffic as per
the above table.
The company is expecting the traffic from the above mentioned companies which are in
vicinity of proposed rail line and are using the rail line as transportation mode. They have
started the negotiations/ discussion for using the proposed rail line. The company is
expected to enter into agreements for usage.
The company has received the letter from East Coast Railway citing the traffic projections
for M/s Mahanadi Coal Ltd on the proposed traffic.
7.1 The projected profitability statement, fund flow statement and balance sheet for the project are furnished in the Annexures. Key
financial indicators are furnished below:
(` in Crore)
Particulars 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
No. of Operating Days 274 365 365 365 365 365 365 365 365 365 365 365
Share Capital 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00
Reserves & Surplus 200.20 450.42 692.86 937.80 1125.56 1313.53 1509.70 1714.05 1926.56 2147.20 2375.92 2610.32
Tangible Net Worth 800.20 1050.42 1292.86 1537.80 1725.56 1913.53 2109.70 2314.05 2526.56 2747.20 2975.92 3210.32
Term loan 1162.86 1075.64 959.36 843.07 726.78 610.50 494.21 377.93 261.64 145.36 29.07 0.00
Other Liabilities 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Net Block (inclu CWIP) 1671.54 1622.12 1572.69 1523.27 1473.85 1424.43 1375.00 1325.58 1276.16 1226.74 1177.31 1127.89
DSRA Balance 82.52 106.55 101.17 95.79 90.41 85.03 79.66 74.28 68.90 63.52 29.41 (0.00)
Other Assets 209.30 397.70 578.66 762.11 888.39 1014.87 1149.56 1292.43 1443.45 1602.60 1798.57 2082.73
Freight Revenue 460.06 612.86 612.86 612.86 520.93 490.29 490.29 490.29 490.29 490.29 490.29 490.29
Total Income 460.06 612.86 612.86 612.86 520.93 490.29 490.29 490.29 490.29 490.29 490.29 490.29
PBDIT 355.35 473.83 473.61 473.37 381.17 350.24 349.91 349.56 349.17 348.74 348.27 347.75
PBDIT margin (%) 77.24% 77.31% 77.28% 77.24% 73.17% 71.43% 71.37% 71.30% 71.22% 71.13% 71.03% 70.93%
Depreciation 37.10 49.42 49.42 49.42 49.42 49.42 49.42 49.42 49.42 49.42 49.42 49.42
Interest on Term Loan 80.67 104.54 94.12 83.36 72.61 61.85 51.09 40.34 29.58 18.82 8.07 0.34
PBT 237.57 319.87 330.07 340.58 259.14 238.96 249.40 259.80 270.17 280.50 290.78 297.99
PAT 186.87 250.22 242.44 244.94 187.76 187.97 196.17 204.36 212.51 220.63 228.72 234.40
D:E ratio 1.45 1.02 0.74 0.55 0.42 0.32 0.23 0.16 0.10 0.05 0.01 0.00
TOL:TNW 1.45 1.02 0.74 0.55 0.42 0.32 0.23 0.16 0.10 0.05 0.01 0.00
DSCR 3.78 2.11 1.83 1.89 1.64 1.68 1.77 1.88 2.00 2.14 2.30 2.42
7.2 The key assumptions underlying the profitability are furnished below:
Equity mapping and drawdown schedule of TL:

(` in Crore)
Particulars 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Total
Equity
expenditure 85.81 29.73 39.05 33.02 125.00 287.39 0.00 0.00 600.00
Term Loan 0.00 0.00 0.00 0.00 0.00 136.01 793.37 233.48 1162.86
Total 85.81 29.73 39.05 33.02 125.00 423.40 793.37 233.48 1762.86
Percentage 4.86% 1.68% 2.21% 1.87% 7.09% 24.02% 45.00% 13.24% 100.00%
Base year 2012

Start of construction (FY) 2012-13
Completion date of construction (FY) 30.06.2019
Date of Commencement of operation 01-Jul-19
Days of Operation (1st year) 274
Days of operations subsequent years 365
Date of Concession Agreement 14-May-10
Concession period 30
1 year Bank MCLR +
ROI for Term Loan (floating) 0.85% p.a. presently 9.25%
Door to Door (yrs) from assumed disbursement 12 yr and 3 quarters

Start of disbursement Q3 of 2017-18
Moratorium Period (yrs) 1
Repayment Period (yrs) 10 years (40 structured quarterly installments)
Commencement of Repayment 2nd quarter of 2020-21
Repayment end 1st quarter of 2030-31
Depreciation charges:
Depreciation as per SLM (Company’s act) 3.17%
Depreciation as per WDV (IT act) 10.00%
Annual Escalation in Freight rates 0%

Revenue accruing to SPV (First 4 Yrs of operation) 100%
Revenue accruing to SPV (after 4 Yrs of operation) 80%
Taxation Assumptions
Corporate MAT Dividend
Base Tax Rate 30% 18.50% 15.00%
Surcharge 10.00% 10.00% 10.00%
Education Cess 3.00% 3.00% 3.00%
Effective Rate 33.990% 20.961% 16.995%
Section 80IA benefit available for 10 years in block of first 15 years of operation
80IA benefit starts from year 2018-19
7.3 Tariff are assumed as per the Indian Railway Conference association circular – Goods
Tariff No. 48 Part I (vol. II) & Part II
Project section being used as

a part of the total O-D
Traffic Tariff
Name of Origin Destination distance
Commodity in per
Generator (O) (D) 2019 to 2047
MTPA tonne
Project Foreign Total
Route Route OD
Outward
Jindal Steel & Steel Kerejanga Various 103.601 161.78 265.38 1.20 467.80
Power Destinations
Bhushan Finished Meramandali Haldia 103.601 359.96 463.56 1.01 799.30
Steel Ltd Products,
Billets Rolled
Products
Mahanadi Coal Talcher Dhamra 103.601 140.22 243.82 17.90 378.00
Coal Fields
Jindal Cast stainless Kalinga Domestic 103.601 299.49 403.09 0.14 687.60
Stainless Nagar Market
Jindal Hot/cold Kalinga Domestic 103.601 299.49 403.09 0.23 687.60
Stainless rolled Nagar Market
products
Tata Steel Slag Kalinga Cement plants 103.601 1174 1277.60 0.20 1975.70
Nagar in Central India
Inward
Jindal Steel & Iron Ore Fines Deojhar Kerejanga 103.601 253.54 357.14 7.06 613.00
Power
Jindal Steel & Iron Ore Deojhar Kerejanga 103.601 253.54 357.14 3.75 613.00
Power Lumps
Bhushan I/Ore Banspani Meramandali 103.601 217.75 321.35 6.06 540.00
Steel Ltd
Bhushan Coking Coal Haldia Meramandali 103.601 359.96 463.56 1.00 668.90
Steel Ltd for BF
Tata Steel Iron Ore Joda Kalinga Nagar 10.00 305.83 315.83 17.14 540.00
The East Coast Railway (ECoR) will apportion the tariff to the company for the line used. The
same will also be used by ECoR for considering the cost incurred for the line.
7.4 Traffic movement per day from the companies is assumed as below:
No. of rakes
Name of Generator per day No. of rakes per year
Outward
Jindal Steel & Power 0.80 292.00
No. of rakes
Name of Generator per day No. of rakes per year
Bhushan Steel Ltd 0.70 255.50
Mahanadi Coal Fields 12.53 4573.45
Jindal Stainless 0.09 32.85
Jindal Stainless 0.16 58.77
Tata Steel 0.14 51.10
Inward
Tata Steel 12.00 4380.00
7.5 Line haul cost is assumed @ ` 1289.12 per KM per rake
7.6 The overall DSCR works out to 2.00.
7.7 The IRR for the project works out to 15.96% and weighted average cost of funds works out
to 8.47%. The spread is 7.49%.
7.8 Sensitivity Analysis:
Sensitivity analysis has been carried out to gauge the impact of the following adverse
developments on the company's performance.
I. Decrease in Revenue by 10%
II. Increase in cost by 10%
Particulars Base Case Sensitivity I Sensitivity II

Overall DSCR 2.00 1.76 1.94
As per the above table company may not face any hurdle in servicing the loan in the
assumed adverse conditions.
However, even if revenue decreases by 30%, the average DSCR works out to 1.26 and
minimum DSCR 1.03 indicating debt serviceability in adverse case scenario.
9.1 The Project has been identified as an important infrastructure Project for the
state of Odisha and is now featuring in the review of the Project Monitoring
Group of union cabinet secretariat.
9.2 It is a joint venture of undertaking under the Ministry of Railways, State Govt.
organization and JSPL.
9.3 The company has already raised promoters contribution of ` 600 Crore as on
22.09.2015 and the same is being expended for construction. The company
would be using ` 600 Crore upfront before availing the debt facility.
9.4 The management of the company is headed by experienced personnel Mr. D

K Samantary from RVNL and Board of Directors of company comprises of
expert personnel.
9.5 With expertise of RVNL in rail link construction and association of State Govt.
as equity partners, the Project is expected to be completed within the
scheduled period.
9.6 As per the projected financials, the DSCR of the company works out to 2.00.
Further the company is able to withstand all the adverse scenarios viz.
- Increase in cost by 10%

- Decrease in revenue by 10%
Proposed Drawdown schedule:

Quarter % Debt drawdown
I (Apr-Jun) 0 0.00
II (Jul-Sep) 0 0.00
III (Oct-Dec) 5.85% 68.00
IV (Jan-Mar) 5.85% 68.00
Total 136.01
Quarter %
I (Apr-Jun) 17.06% 198.34
II (Jul-Sep) 17.06% 198.34
III (Oct-Dec) 17.06% 198.34
IV (Jan-Mar) 17.06% 198.34
Total 793.37
Quarter %
I (Apr-Jun) 20% 233.48
Total 233.48
Grand Total 1162.86

Annexure VII: Computation of Projected DSCR:
(` in Crore)
Particulars 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
No. of Operating Days 274 365 365 365 365 365 365 365 365 365 365 91
PAT 186.87 250.22 242.44 244.94 187.76 187.97 196.17 204.36 212.51 220.63 228.72 58.44
Depreciation 37.10 49.42 49.42 49.42 49.42 49.42 49.42 49.42 49.42 49.42 49.42 12.32
Total Inflow 304.65 404.19 385.98 377.73 309.78 299.24 296.69 294.11 291.51 288.88 286.21 71.10
Repayment of Term Loan 0.00 87.21 116.29 116.29 116.29 116.29 116.29 116.29 116.29 116.29 116.29 29.07
Total Outflow 80.67 191.75 210.40 199.65 188.89 178.13 167.38 156.62 145.87 135.11 124.35 29.41
Yearly DSCR 3.78 2.11 1.83 1.89 1.64 1.68 1.77 1.88 2.00 2.14 2.30 2.42
Overall DSCR
Minimum DSCR

IM Angul Railways PIF II

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IM Angul Railways PIF II

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M/s ANGUL SUKINDA RAILWAY LTD

SINGLE RAILWAY LINE OF 113.395 KM BROAD-GAUGE IN ODISHA

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Name/Borrower M/s Angul Sukinda Railway Ltd

• Strengthening of Golden Quadrilateral and Diagonals connecting the 4 metro cities

• Haridaspur – Paradip Railway Line (Odisha) – under implementation

• To carry on the business of development, establishment, financing, construction,

The organizational structure of the company is as follows:

Chief Financial Company Manager Traffic Manager (F&A)

Share holding pattern of the company as on 31.03.2017 is furnished below:

1 Rail Vikas Nigam Limited 189,000,000 10 1,890,000,000 31.50

S.N Name of Director Designation DIN D.O.B PAN No

PROMOTER COMPANY - RVNL

• Fasttrack implementation of Rail infrastructure projects

M/s JINDAL STEEL AND POWER LTD (JSPL)

ODISHA MINING CORPORATION LIMITED:

CONTAINER CORPORATION OF INDIA

Select Key Financial Indicators of Angul Sukinda Railway Ltd. (ASRL)

Tangible Net Worth (TNW):

4.1 Project Background:

The proposed alignment will have the following impact:

- Dispatch of finished products of the steel plants of Daitari Industrial Complex to

4.2 Project - Geographic area:

Depicts the companies in and around the proposed line

4.3 Scope of the Project

4.4 Concession Agreement:

Concessioning Authority Event of Default: Concessioning Authority shall be deemed to have

Lenders Step in Rights: Notwithstanding anything to the contrary in the Concession

Payment on termination on Account of Concessioning Authority’s Event of default:

Transfer payment on termination on Account of Concessionaire’s Event of Default: ASRL

4.5 Construction Agreement

4.6 Scope of Project

4.8 Contract Value

4.9 Terms of Payment:

4.10 Operations & Maintenance Agreement

The revenue model for the project is explained below:

- Orissa Sponge Iron Ltd

Revenue sharing, escalation and inflated freight is furnished below:

SN Item Description: Current Status as on date:

4.14 IMPLEMENTATION SCHEDULE:

Particulars Expected time of Completion

Accordingly, Company will be undertaking construction of 113.395 KM. The revised

The proposed means of finance is as under:

5.2 Land Cost:

Lease deeds for 110 acres have been submitted for

Additional : 24.898 acres Additional demand of 24.898 acres has been

Stage-II clearance of forest land is in advance stage of

5.3 Civil Works:

Route Start End Total length (KM)

5.6 Permanent Way:

The following are the components of permanent way or a Railway tack:

5.7 Bridge Work:

Allotment of contracts/tenders for bridge completion works are under process.

5.8 Station, Buildings And Others:

5.9 Office (Station Buildings):

One health unit has been proposed at Kamakhaya Nagar.

5.10 Residential Building and Staff Quarter:

5.11 Plant and Machinery:

The description of S&T works include the following:

5.14 Electrical Engineering & Over Head Expenses:

5.16 D & G Charges:

• 9.25% for Metro Projects

5.17 RVNL Charges:

5.18 Pre-operative Cost: