Railways Raises PE To Lay 295-km Track In Chhattisgarh

Indian Railways has raised private equity in a special purpose vehicle (SPV), Chhattisgarh Katghora-Dongarhgarh Railway Limited, for laying railway tracks in a move set to change the funding landscape for the national carrier and pave the way for further such investments. Until now, railway tracks have been made and laid solely from public funding and owned by Indian Railways.

The first part-private funded railtrack will come up on a 295-km Katghora-Dongargarh corridor in Chhattisgarh at a cost of ₹5,950 crore.

According to the plan, 25% of the project cost— around ₹1,487 crore—would be shared among the four entities, with the Chhattisgarh government and Indian Railways buying in 24% equity each in the SPV and Maharashtra State Power Generation Company (Mahagenco) and ACB India Private Limited (a coal and power generation company) holding 26% equity each. The remaining 75%, ₹4,463 crore, will be raised through debt from financial institutions. Read more

Indian Railways