Ministry of Railways signed a Joint Venture Agreement with Government of Odisha for improving Railway Infrastructure in the State
Chief Guest: A K Mittal, Member Engineering, Railway Board
- P Dudeja, ED/Works on behalf of Ministry of Railways
- Sanjay Rastogi, Principal Secretary/ Transport, Govt. of Odisha
Role of Joint Venture Company:
- Identification of Projects needs to be developed
- Find places for financing
- Ministry of Railways and Govt. Of Odisha shall be funding such identified projects
- Special purpose vehicles shall be formed
- Formation of Joint Ventures with States for Project Development and implementation, Resource mobilisation and monitoring of critical rail projects to build up railway lines in various states
- Karnataka is already having a Joint Venture by the name K-RIDE with Ministry of Railways.
- 17 State Governments accorded for formation of Joint ventures Companies to develop rail infrastructure in their states.
- Draft Memorandum of Understanding were sent to these states
- Seven States such as Odisha, Maharashtra, Chhattisgarh, Andhra Pradesh, Telegana, Kerala and Haryana have already signed the MoU’s with Ministry of Railway
- Two States Jharkhand and Gujarat are interested to sign the MoU
- Eight States Punjab, Bihar, West Bengal, Madhya Pradesh, Rajasthan, Tamil Nadu and Uttar Pradesh shown interested for formation of Joint Venture companies.
Features of Memorandum of Understanding:
- Percentage of Stake
- State Government – 51%
- Ministry of Railways – 49%
- Fully owned by the Government
- Ownership of the land shall vest with the SPVs
- National integration by connecting the Rural and bringing people closer to each other