As many as 16 states have responded till now to Railways’ offer of sharing cost of about 40 projects worth over Rs 60,000 crore for speed implementation of laying new lines and development of stations among others.
Railways has undertaken the steps to mobilise resources over and above the available budgetary resources to fast track execution of projects. “Railway Minister Suresh Prabhu had written to all states for becoming partners in rail projects. So far, 16 states have come forward to share cost of 43 projects worth Rs 62,379 crore,” said a senior Railway Ministry official, adding “state governments are sharing 25 per cent to 66 per cent cost of the projects.”
The Joint Venture Company can form Project Specific Subsidiary Company (Project SPV) which may have equity holding by other stakeholders like banks, PSUs, ports, mining companies etc. for implementation.
Railways has arranged extra budgetary resources from financial institutions for which Railway Ministry has signed an MoU with LIC for a loan of 1,50,000 crore to be received over a period of five years, for funding capacity enhancement projects.