Tata Steel to acquire 40 crore Redeemable Preference Shares of Angul Sukinda Railway worth Rs.400 crore
Bhubaneswar: Tata Steel Limited has executed a long-term agreement with Angul Sukinda Railway Limited (ASRL), for the construction, operation and maintenance of an alternate railway line. The agreement is for a period of 20 years to meet the logistic requirements of TSL’s Kalinganagar Steel Plant. TSL will be funding the entire expenditure of ₹400 crore (in a phased manner) for construction of the Additional Rail Line by subscribing to 40 crore non-convertible, non-cumulative, redeemable preference shares of face value ₹10/- (Rupees ten) each of ASRL.
ASRL was incorporated on February 2009 as a special purpose vehicle by the Ministry of Railways, for developing, financing, construction, operation and maintenance of a 104.24 km broad gauge single railway line between Angul and Sukinda in Odisha to establish direct link between iron-ore rich areas of Odisha viz. Joda-Barbil to steel and sponge iron industries in Angul region and between coal mining region in Talcher to industries in Jakhapura, Joda-Barbil and areas in Kendujhar district, Odisha. Turnover of ASRL as on March 31, 2021 is ₹539.62 crore.