Cabinet approves JV with states for rail projects

To ensure greater participation of states, Union Cabinet has given its stamp of approval by allowing the Railways to form Joint Venture companies with state governments to mobilize resources for speedy implementation of rail projects.

• Initial Paid capital of initial of each Joint Venture (JV) – Rs 100 crore
• Railways’ initial paid-up capital – Rs 50 crore

The JV can also form project-specific SPVs (special purpose vehicle) with equity holding by other shareholders like Banks, ports, public sector undertakings, mining companiesetc.