NEW DELHI:As many as 16 states have agreed till now to Railways’ offer of sharing cost of about 40 projects worth over Rs 60,000 crore for speed implementation of laying new lines and development of stations among others.
Railways has undertaken steps to mobilise resources over and above the available budgetary resources to fast-track execution of projects.
According to Railway officials, 16 states have responded to the letter written by Railway Minister Suresh Prabhu to all states to become partners in rails projects. “State governments have agreed to share 25-66 per cent cost of the 43 projects worth Rs 62,379 crore,” a senior Railway official said.
Chhattisgarh, Gujarat, Haryana, Kerala and Odisha governments have signed agreements to create state-specific joint venture companies to undertake development works, resource mobilisation and monitoring of mutually identified rail infrastructure projects with equity participation of Railways limited to maximum 50 per cent.
And states like Andhra Pradesh and Maharashtra have also agreed to form joint venture companies. Officials said 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. The Joint Venture Company can form Project Specific Subsidiary Company (Project SPV) which may have equity holding by other stakeholders like banks, PSUs, ports and mining companies for implementation. Besides strengthening connectivity by laying new lines and doubling, Railways is focusing on station development programmes for enhancement of passenger amenities.