Railways signs MOU for formation of JV Cos with 6 State Governments

Each JV would have an initial paid up capital of `100 crore. Based on the quantum of projects to be undertaken, the authorized equity share capital and the paid up capital can be enhanced from time to time with the approval of Railway Board and the State Government

ZooZoo IRNew Delhi: Ministry of Railways (MoR) has signed Memorandum of Understanding (MoU) for formation of Joint Venture Companies with six State Governments viz. Odisha, Maharashtra, Andhra Pradesh, Kerala, Chhattisgarh and Telangana.

Joint Venture Company will be formed with equity participation of MoR (limited to maximum 50%) and concerned State Government(s). JVs can form project specific subsidiary companies (Project SPVs), which may have equity holding by other stakeholders like banks, PSUs, Ports, mining companies etc. as well, to cater to a specific project.

Each JV would have an initial paid up capital of `100 crore. Based on the quantum of projects to be undertaken, the authorized equity share capital and the paid up capital can be enhanced from time to time with the approval of Railway Board and the State Government.

JVs would undertake project development works for an identified basket of projects, which will inter-alia include surveys, preparation of Detailed Project Report (DPR) and getting requisite approvals, processing for sanctioning of identified projects and monitoring. Projects will be implemented by the concerned Zonal Railway, any Railway PSU or any other agency as decided by the JV/Project SPV in consultation with Ministry of Railways.

Various other steps taken/being taken by the Government for effective and speedy implementation of rail projects in the country are:-

(i) substantial increase in allocation of funds,
(ii) prioritisation of projects,
(iii) delegation of powers at field level,
(iv) nomination of nodal officers for improved co-ordination with the State Governments etc.

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