HRIDC invites EOI for Equity Participation in Special Purpose Vehicle for Haryana Orbital Rail Corridor Project

The Haryana Rail Infrastructure Development Corporation Limited (HRIDC) has invited Expressions of Interest (EOI) for Equity Participation in Haryana Orbital Rail Corporation Limited (HORCL) a Special Purpose Vehicle for Haryana Orbital Rail Corridor Project from Palwal to Sonipat.

• Tender No.: HRIDC/EOI/HORC-48/2021
• Name of work: Equity Participation in Haryana Orbital Rail Corporation Limited (HORCL) a Special Purpose Vehicle for Haryana Orbital Rail Corridor Projectfrom Palwal to Sonipat.
• Start Date: 07.04.2021
• End Date: 14.05.2021

About HRIDC:

• Haryana Rail Infrastructure Development Corporation Limited (HRIDC) was incorporated on 22nd August 2017 as a Joint Venture between the Government of Haryana and the Ministry of Railways with equity participation of 51% and 49% respectively. The company has been set up by the Ministry of Railways (MOR) with the Governmentof Haryana (GoH) with the mandate to undertake railway projects for development, study, arranging finance, execution of projects, and boost the rail  infrastructure in the state of Haryana on the principle of cooperative federalism. (HRIDC website:www.hridc.co.in)
• The broad objectives of HRIDC are:
  • To act as the nodal agency, to play an anchor role in the planning and implementation of railway infrastructure projects in the State of Haryana
  • To generate financial resources through the participation of the Central and State Governments, other stakeholders, including the private sector in project-specific Special Purpose Vehicle(s) (SPVs).
• As per its mandate, HRID Chas developed the iconic project named as ‘Haryana Orbital Rail Corridor (HORC)’ from Palwal to Sonipat via Sohna, Manesar, Kharkhoda bypassing Delhi. The Project has received approval from the Cabinet Committee on Economic Affairs (CCEA), Government of India on 15.09.2020. HRIDC is the implementing agency for the HORC project.

About Haryana Orbital Rail Corridor Project:

• Haryana Orbital Rail Corridor (HORC) Project  (“Project”) is a proposed Greenfield Electrified Broad-Gauge Double Rail Line Project between Harsana Kalan (Sonipat) and Palwal bypassing Delhi area and connecting toDedicated Freight Corridor(DFC) network at Pirthala. The total route length is 122 Km (144 Km including connectivity).
• National Capital Region Planning Board (NCRPB) Regional Plan 2021-includes Orbital Rail Corridor around Delhi. Master Plan of NCR Haryana sub-region includes provision for Orbital Rail Corridor (50m width) along the KMP Expressway. Railway Budget speech (2016-17) stressed the need to revive the Delhi Ring Railway system  for suburban commuter traffic (currently overcrowded with freight traffic).
• The existing railway network of Delhi is heavily congested having a capacity utilization of more than 100%

Capacity utilization in the existing Railway network in Delhi:-

• HORC will have suitable connectivity to the existing Palwal station of the Indian Railwaysand proposed Pirthala Yard of DFCnetwork. HORC will have connectivity  with the existing major routes of Indian Railways at Palwal (Delhi-Mathura Section), Patli(Delhi-Rewari section), Sultanpur (Farukhnagar-GarhiHarsaru section), Asaudah (Delhi-Rohtak section),and Harsana Kalan (Delhi-Panipat Section). 
• The major alignment of HORC is in close proximity to either DFC or Kundli-Manesar-Palwal Expressway (KMP Expresswayor Western Peripheral Expressway). HORC isplanned as a High-Rise OHE section (with a speed potential of 160 Kmph and 25 Ton Axle load) for the operation of Double-Stack Containers as a feeder route for Western DFC. The alignment of the project is given in Annexure-II.
• HORC is designed to run both Freight and Passenger trains. The design capacity of the Project is 100 Million Tons (MT) annually each way.
• A detailed traffic report prepared by HRIDC in consultation with Northern Railway has projected freight movement of 48 trains per day in the first year of the commissioning  of the Project and going up to 128 trains per day in the year 2052. Additionally, 9 pairs of passenger trains have been projected in the first year and going upto15 pairs per day in the year 2052.

Project cost estimate: 

The capital cost for the Haryana Orbital Rail Corridor, including land cost, is as follows:

Project cost estimate:-

Project Status:

Status of Approvals of the Project: 

The project has already got all mandatory clearances from the Governmentof Haryana and the Government of India as under:

Status of approvals:-

Purpose of the EOI:

• This Expression of Interest (EOI) is being issued by Haryana Rail Infrastructure Development Corporation Ltd. (HRIDC) to seek interest from eligible entities for equity participation in the Project SPV i.e., Haryana Orbital Rail Corporation Limited (HORCL) for implementation of the Project.  
• Haryana Orbital Rail Corridor (HORC) project is expected to be constructed at an estimated cost of Rs. 5617.69 Cr. Out of the total cost of the project, Rs. 1500 Cr is  to be raised through Equity. 
• Earlier at the project conception stage, efforts were made to get participation from  the Private sector as equity partner in the Project. A Stakeholders Event was  organized in February 2019 at Gurugram where various stakeholders such as logistic  players, major industries in the command zone of the project, major banks and funding  agencies were invited. The event and project details were widely publicized in print and electronic media. An Expression of Interest (EOI) was also invited vide Letter no. HRIDC/PP-J-48/2019/266 dated 07-03-2019 through wide publication in  newspapers and as a result some private players have come forward to invest in the project as equity partners.
• As now the Project has been approved by the Cabinet Committee of Economic Affairs (CCEA), Government of India and all other arrangements for implementation of the Project have been firmed up; thus, through this EOI process, the Authority intends to increase the number of equity participants by inviting stakeholders and investors, adopting a transparent process. 
• It may be noted that the existing equity  will be redistributed, at par, among the new entrants without any modification to the debt-equity ratio, overall project cost, or the scope of the Project1. The equity will be  redistributed from amongst  the existing equity holders to the new entrants.
• The purpose of this EOI is to:
  • Invite responses from participants by giving fair and transparent opportunity, so that HRIDC can select equity partners in HORCL.
  • Advise prospective firms about the HORC Project, eligibility criteria, and how  to apply for equity participation in HORCL.
• The entities who have already given their consent to HORCL for equity participation are not required to apply afresh as a response to this EOI.
• The HORCL network will cover the western periphery of the National Capital Region. There is significant potential for setting up freight terminals, logistic parks container depots etc. which will have seamless connectivity for the operation of Double-Stack  Containers (being High-Rise OHE section)as a feeder route for Dedicated Freight Corridor Network. 
• Such terminals will help HORC in attracting the traffic and  increase in haulage and apportioned earnings. Therefore, as per the policy of the HORCL, in case the equity holders of the company set up a terminal i.e. Private Freight Terminal, logistic parks, or private siding etc., during the project execution stage, they will be provided free of cost connectivity within the station yard limits

Source: HRIDC-Tender