New Delhi (Agency): South Eastern Coalfields Ltd (SECL) has hit a key financial milestone for Phase-II of the Chhattisgarh East Railway Limited (CERL) project. A term loan agreement for ₹1349 crore was signed between the Central Bank of India and the promoters, including SECL and other stakeholders. This move brings the project one step closer to financial completion.
CERL is a subsidiary of SECL, owning a 64% stake, and was formed as a joint venture with Ircon International Limited (IRCON) and the Chhattisgarh State Industrial Development Corporation (CSIDC). The project is aimed at building rail infrastructure in Chhattisgarh and is considered a ‘Special Railway Project’ with high priority from the Indian Government.
Phase-II of CERL will be a 62.50 km long railway line from Dharamjaygarh to Korba. This rail link will connect to Phase-I and provide an alternate route for transporting coal to northern India. It will particularly facilitate the surplus coal movement from Mand-Raigarh Coalfields and Basundra Coalfields to the Northern and Western Power Houses of the country.
The total cost of CERL Phase-II is estimated at ₹1686.22 crore, funded by a Debt: Equity ratio of 80:20. This means that ₹1349 crore will be the loan amount and ₹337.22 crore will be equity. The promoters have already invested ₹273.81 crore in the project, enabling them to acquire the required land and obtain forest clearance. The project is expected to be completed by March 2026.
Present at the loan document signing ceremony were notable figures like Shri S. K. Pal, Director Technical (Opns.), SECL; Shri G. Srinivasan, DF (SECL); Smt. Ragini Advani, DF (IRCON); and other senior officials. They emphasized that the loan will help kick-start construction activities and create employment opportunities in Chhattisgarh.
Besides creating jobs, the project is expected to contribute significantly to the socio-economic and environmental progress of Chhattisgarh. It is part of the larger PM GatiShakti initiative, a National Infrastructure Project aimed at creating robust infrastructural networks across the country.
SECL is a major subsidiary of Coal India Limited and produced 167 million tonnes of coal last fiscal year. With this financial milestone, the CERL Phase-II project now gains further impetus and is set to bolster the rail infrastructure and overall growth of Chhattisgarh.