Gujarat to set up new Rail Company to connect important Industrial Clusters

Gandhinagar: Gujarat government has decided to set up a new special purpose vehicle (SPV) Railway Company to connect industrial clusters with major railway stations for faster movement of goods. It will also help in reducing the burden on roads. The government plans to invest around Rs 4,000 crore for building this dedicated railway network.

Maheshwar Sahu, Additional Chief Secretary with Industry and Mines Department said, “The new SPV will be formed shortly in which Gujarat Industrial Development Corporation (GIDC), Gujarat Industrial Corridor Company (GICC) and the Railway Board will put equal equity. The process of establishing the SPV is in the last stage.”

He said the purpose of the SPV is to link new industrial clusters like Sanand, Godhavi, Vithalpur, Mandal-Bechraji with the proposed industrial parks, transport nagars and logistic parks for faster and hassle free movement of produced goods. The rail network will be linked with the Delhi Mumbai Industrial Corridor (DMIC) and DFC (Dedicated Freight Corridor) also.

“Initially we aims to have around 100 to 150 km long rail network which will be linked with the major railway stations which will help in faster and cost effective movement of goods as well as reduced burden on state and city roads. The network is expected to become functional in the next three years,” added Sahu.

Initially GIDC, GICC and railways will invest around Rs8 to Rs9 crore as promoters share to form the company. Thereafter the government will generate project fund from different sources. The SPV will be based on public private partnership (PPP) model. The state Government also exploring the option of linking the dedicated logistic rail network with the Ahmedabad regional rail network which is meant for passenger transport for which the government is forming a separate SPV.

Gujarat government along with Indian railways started private rail projects on Surendranagar-Pipavav and Gandhidham-Palanpur stretches some years back. Another project of Kutch Railway Company connects ports of Kandla and Mundra. Several such private rail projects are expected to come up in the next few years in the state.