New Delhi:- The railways today formed a joint venture company (JVC) with the Haryana government for undertaking rail infrastructure projects in the state.
This is a “great step” towards quick execution of rail projects, Railways Minister Suresh Prabhu said here after formation of JVC with the Haryana government here.
Haryana becomes the second state, after Odisha, to form a joint venture company with railways. Earlier, both states had signed MoUs for this purpose.
With the formation of the joint venture, many projects like expansion of rail network and modernisation of stations in the state will be taken up in a focussed manner, said a Railway Ministry official.
Projects for laying new tracks, doubling lines and gauge conversion needed around Rs 3.5 lakh crore. “This has necessitated partnering with states for resource mobilisation,” he said.
According to the railways, six more states have given consent for forming joint venture companies with the railways.
A joint venture company envisages equal equity participation of the railways and state governments concerned.
Each JV would have an initial paid up capital of Rs 100 crore based on the quantum of projects to be undertaken.
Participation in infrastructure creation by state governments with the railways is expected to dawn a new era of development in the remote and backward regions of the country and the national transporter would act as a catalyst for developing such infrastructure, the official said.
PTI
