Indian Railways plan to include the states in dividing expenses for laying of new lines and development of stations have just received a positive response. Almost 16 states have agreed to the proposal, as per news report by an agency.
Railways has undertaken the steps to mobilise resources over and above the available budgetary resources to fast track execution of projects.
"Railway Minister
Suresh Prabhu had written to all states for becoming partners in rail projects. So far, 16 states have come forward to share cost of 43 projects worth Rs 62,379 crore," a senior
Railway Ministry official told the agency, adding "state governments are sharing 25 per cent to 66 per cent cost of the projects."
The extent of implementation of projects depends upon the response of the state government as some states are also giving land free for the projects.
Besides strengthening connectivity by laying new lines and doubling, Railways is focusing on station development programmes for enhancement of passenger amenities.
The aim is to provide better facilities at stations and states like Odisha,
Maharashtra and
Chhattisgarh are keen on developing stations at world class level in their respective states, he said.
Chhattisgarh, Gujarat, Haryana, Kerala and Odisha governments have signed the joint venture agreement to create state specific joint ventures companies to undertake project development, resource mobilisation and monitoring of mutually identified rail infrastructure projects with equity participation of Railways limited to maximum 50 per cent.
Andhra Pradesh and Maharashtra governments have also agreed to form joint venture companies, the official said.
The Joint Venture Company can form
Project Specific Subsidiary Company (Project SPV) which may have equity holding by other stakeholders like banks, PSUs, ports, mining companies etc. for implementation.
Railways has arranged extra budgetary resources from financial institutions for which Railway Ministry has signed an MoU with
LIC for a loan of 1,50,000 crore to be received over a period of five years, for funding capacity enhancement projects.
