Saturday, June 7, 2008

Expression of Interest invited for Equity by Railways

Rlys invites EoI for equity engine in freight links: These include Reliance Industries’ (RIL) Hamrapur-Rewas, Balaji Infrastructure’s Dighi-Indapur and Angul-Sukhinda stretches. The investment involved in the projects is Rs 2,000 crore. The railway lines will cater to coal, petroleum, fertilisers, iron ore and containers. The News clipping gives further details.
I was personally involved in preparing the estimates of operation and maintenance cost of Dighi Indapur Rail Link which was for the distance of 42 Kms. O & M includes both fixed and variable cost and in this case O & M was estimated by Fully Recovered cost methd. Both these costs have different components. By estimating the cost of staff establishment, cost of material etc, we arrived at the final figure of Rs. 1425 per train Km for 2004-05.
It was a very interesting exercise to do as I learned a lot.