Cabinet clears formation of JVs between Indian Railways and states.

The Cabinet recently approved the formation of joint venture companies with various state governments to mobilise resources for undertaking rail infrastructure projects.

The initial paid-up capital of the Ministry of Railways will be limited to ₹50 crore for each state. The joint venture companies would be formed with equity participation from the Ministry of Railways and the state governments concerned. Each joint venture will have an initial paid-up capital of ₹100 crore and based on the projects to be undertaken, further fund infusion would be done on approval of the project.

The joint ventures will be allowed to form project-specific special purpose vehicles with equity holding from other stakeholders such as banks, ports, public sector undertakings, mining companies, and others.

“This would ensure greater participation of state governments in implementation of railway projects, both in terms of financial participation as well as the decision-making process. This will also facilitate faster statutory approvals and land acquisition,” an official statement added.

Meanwhile, the Cabinet also approved signing of various memorandums of understandings in the field of urban development. One such MoU is between SITNEF, Norway, and Central Public Works Department for cooperation in development of human resource capacity building and scientific research in recycling of construction and demolition waste in India.

HBL