The Ministry of Railways has approved the construction of the newly announced Manuguru–Ramagundam railway line. Developed under the Public-Private Partnership (PPP) model, the project is estimated to cost 5,818.45 INR-Crore. The 207.8 Km broad-gauge line is expected to significantly improve connectivity in remote tribal regions of Telangana while boosting freight earnings from the Singareni coal belt.
The Public Private Partnership Appraisal Committee (PPPAC) under the Department of Economic Affairs, Ministry of Finance, has granted in-principle approval for the project. It will be awarded to a private concessionaire for a 50-year term, including the construction phase. The selected company will be chosen based on the lowest viability gap funding, capped at 40% of the project cost.
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Indian Railways will handle land acquisition, secure clearances, prepare the Detailed Project Report, and operate train services. Meanwhile, the concessionaire will be responsible for design, construction, financing, and maintenance. The completion timeline has been fixed at five years, including one year for land acquisition and four years for construction.
Officials noted that the Manuguru–Ramagundam railway line will reduce the distance between the two towns by nearly 90 Km. It will also serve as an alternative route to the Nagpur–Vijayawada section of the New Delhi–Chennai Grand Trunk line. This will further enhance overall efficiency in passenger and freight movement.

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