Cabinet approves formation of joint venture with states for Indian Railways projects

By PTI  www.financialexpress.com

With a view to ensure greater participation of states, Union Cabinet today allowed the Indian Railways to form Joint Venture companies with state governments to mobilize resources for speedy implementation of rail projects.

Keeping in mind the growing demands for railway lines in various states and huge requirement of funds to execute them, JV companies will be now responsible for identifying projects, land acquisition and possible financing in addition to government funding and also monitoring.

The Cabinet presided by Prime Minister Narendra Modi decided that the Joint Venture companies would be formed with equity participation of Ministry of Railways and concerned state governments.

Each Joint Venture (JV) would have an initial paid-up capital of Rs 100 crores based on the quantum of projects to be undertaken, a statement said.

Railways’ initial paid-up capital will be limited to Rs 50 crore for each state. Further infusion of fund/equity for the purpose of the projects shall be done after approval of the project and its funding at the level of appropriate competent authority, the statement added. More info

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