| OMC asked to confirm its equity participation in SPV by riteshexpert on 20 August, 2012 - 12:02 PM | ||
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 riteshexpert | OMC asked to confirm its equity participation in SPV on 20 August, 2012 - 12:02 PM | |
‘The delay hampering the Angul-Duburi-Sukinda project’. Odisha Mining Corporation (OMC), a State public sector unit, has been asked to confirm its equity participation in the Special Purpose Vehicle formed to develop Angul-Duburi-Sukinda Railway Project, which will be a critical industrial corridor for the State.While Rail Vikas Nigam Limited has a majority stake with 45 per cent, Jindal Steel and Power Limited, and Bhusan Steel Limited have 25 per cent and 20 per cent equity respectively.It was decided that the State government would hold balance 10 per cent equity with 1 per cent equity going to Odisha Industrial Infrastructure Development Corporation (IDCO) and 9 per cent to Odisha Mining Corporation.According to Steel and Mines Department sources, while IDCO has already finalised to hold 1 per cent equity in SPV, the OMC has so far not confirmed its equity participation of 9 per cent in the SPV. The OMC was directed to place the matter before Board of Directors of OMC urgently for reconsideration and to communicate its decision to the department,” a senior official in the Steel and Mines Department said.In 2009, it was suggested that OMC would take 5 per cent equity in the SPV. The Steel and Mines Department, under which OMC functions, had also agreed to the proposal. But when shareholding of RVNL, JSPL, and Bhusan Steel Limited did not go beyond 90 per cent, there was gap of 10 per cent in the equity left for the entry of the State government. Total cost of the project was estimated at Rs. 400 crore. | ||