Railways Signs Pact with Odisha Government for Joint Venture company for Rail Infrastructure
NEW DELHI, June 14: Railways today signed
a pact with the Odisha government for setting up a joint venture company for
development of rail infrastructure in the eastern state.
Under the agreement, Railways will have 49 per cent stake while the state
government will own 51 per cent in the JV company which will identify projects
for development and mobilisation of financial resources for their execution, an
official statement said.
As part of it, the two partners will fund part of such identified projects, it
said, adding, project-specific special purpose vehicles (SPVs) would also be
formed after financial closure of the project.
In view of growing demands for railway lines in various states and huge
requirement of funds to execute them, Railway Minister Suresh Prabhu had
announced in his budget speech setting up of joint ventures with states for
focused project development, resource mobilisation, land acquisition, project implementation
and monitoring of critical rail projects.
As many as 17 state governments have consented to formation of JV companies for
development of rail infrastructure in their respective state.
-PTI
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