Tata Steel Limited has signed a long-term agreement with Angul Sukinda Railway Limited (ASRL) to construct, operate, and maintain an alternate railway line.
The agreement is for 20 years to meet the logistic requirements of Tata Steel Limited's (TSL) Kalinganagar Steel Plant.
TSL will fund Rs 400 crore to construct the additional rail line by subscribing to 40 crore non-convertible, non-cumulative, redeemable preference shares of face value Rs 10 each of ASRL, the company said in a statement.
Angul Sukinda Railway Limited (ASRL), is a public limited company.
The Ministry of Railways incorporated ASRL in 2009 to develop, finance, and maintain a 104.24 km broad gauge single railway line between Angul and Sukinda and establish a direct link between iron-ore areas of Odisha to steel and sponge iron industries and coal mining regions.
The acquisition will complete in December 2024.
Turnover of ASRL as of March 31, 2021, is Rs 539.62 crore. ASRL's turnover has increased substantially from Rs 238.21 crore in 2019 to Rs 303.08 crore in 2020.
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