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In a major development in PM GatiShakti rail corridor projects in Chhattisgarh, rupee term loan documents were executed between the Central Bank of India under sole banking and the promoters, i.e., South Eastern Coalfields Ltd (SECL), Ircon International Ltd (IRCON), CSIDC and CERL on Monday, towards development of second phase of Chhattisgarh East Railway Ltd (CERL).

The total debt exposure in this financial contract will be of Rs 1,349 crore.

This concludes the documentation process of achieving financial closure of the project, which is a major milestone.

The CERL is a subsidiary company of the SECL (with 64 per cent stake) formed as a joint venture with IRCON (with 26 per cent stake) and the Chhattisgarh State Industrial Development Corporation (CSIDC), representing the state government, with 10 per cent stake).

The CERL project is planned with the specific purpose of constructing rail infrastructure in the state. This project is being implemented based on the Joint Venture (JV) model of PPP projects under Concession Agreement (CA) with the Railways Ministry and is notified as 'Special Railway Project' to provide national infrastructure for a public purpose with high priority accorded by the Centre.

CERL is planned in two phases. The Phase I of CERL is majorly commissioned and is facilitating evacuation of coal from Mand Raigarh coalfields. The CERL Phase-II project with a project length of 62.50 km from Dharamjaygarh to Korba is planned to provide the critical rail link between CERL Phase-I which stretches from Kharsia to Dharamjaygarh with Spur line up to Pelma and three feeder lines (124.80 km) and CEWRL which stretches from Gevra Road to Pendra Road (Main Line of 135 km).

This will provide an alternate rail route for transportation of coal to the northern parts of the country, as it will provide a link from Kharsia to Pendra which will facilitate surplus coal movement of Mand-Raigarh Coalfields and Basundra Coalfields to the northern and western power houses of the country.