Railways-state joins hand for rail network

Close on the heels of inking memorandum of understanding with states like Odisha, Maharashtra, Chhattisgarh, Andhra Pradesh, Telangana, and Kerala, Indian Railways recently signed an agreement with Haryana to form a special purpose vehicle jointly. The agreement, which was signed between Railway Minister, Suresh Prabhakar Prabhu and Chief Minister of Haryana, Manohar Lal Khattar, will go a long way to meet the growing demands for railway lines in the states including Haryana to generate funds to execute the railway projects including project development, resource mobilization, land acquisition, project implementation, and monitoring of critical rail projects. As a matter of fact, 17 State Governments consented for formation of Joint Venture Companies in collaboration with the Ministry of Railways for development of rail infrastructure in their respective States. The Joint Venture Company having 51% stake of the State Government and 49% share of central government, and that the SPVs shall be wholly owned by the Central Government.

Published: 12 June 2016