SAIL signs pact with Rail Vikas

New Delhi: Steel Authority of India Ltd (SAIL) has signed a traffic guarantee agreement with Rail Vikas Nigam Ltd (RVNL) under the Ministry of Railways, for transportation of 5 lakh tonnes of imported coking coal per year using the Paradip-Haridaspur railway line. SAIL also handed over a cheque for Rs 2.5 crore as its equity contribution in Haridaspur-Paradip Railway Company Ltd, which has been formed by RVNL as a special purpose vehicle (SPV) for development of an 82-km railway line in Orissa to connect Paradip port with the hinterland. 'By becoming a strategic investor in the company, SAIL is ensuring availability of required number of rakes from the Indian Railways for movement of imported coking coal to meet its increased production targets of 2010. The company will also enjoy reduced freight rates for some destinations,' a release from SAIL said.