Singareni Collieries on August 6 paid Rs 6.38 crore to South Central Railway for conducting the final location survey for the Bhadrachalam Road- Sattupalli new railway line. The line is expected to facilitate movement of coal from Singareni Collieries.
The coal miner is having three open cast projects in Sattupalli area with the expected production from these being about six million tonne a year. The distance between the mines and the nearest coal handling plant at Rudrampur is about 55 km.
A company release said that it is not possible to transport the six million tonne of coal by road. Hence, the railway line is essential for moving this commodity. The project was sanctioned last year at a cost of Rs 337 crore, the release said.
While Singareni will be contributing Rs 318 crore, the cost of land, Rs 19 crore, will be borne by the Railways.