The Union Cabinet in India gave its approval for the Ministry of Railways to form joint venture companies with state governments to mobilize resources for undertaking various rail infrastructure projects across the country.
The joint venture companies, to be formed with equity participation of the Ministry of Railways and concerned state governments, are expected to ensure greater participation of states in implementation of railway projects, both in terms of financial participation and decision-making.
While each JV would have an initial paid up capital of Rs.100 crore (USD 14 million) based on the quantum of projects to be undertaken, the Ministry of Railways’ initial paid-up capital is limited to Rs.50 crore (USD 7 million) per state.
The Ministry of Railways has been preparing for modernisation of all stations across the country. Finance Minister Arun Jaitely, last month, had said that the Ministry of Railways will soon call for bids for modernization of 400 stations.
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