Wednesday, February 3, 2016

Cabinet clears formation of JVs between Indian Railways and states

Union Cabinet approved a proposal for the formation of a joint venture companies between Indian Railways and state governments.
Objective: To mobilise resources for executing rail infrastructure projects.
  • Initial paid-up capital: Rs 100 crore
  • Rail ministry’s paid up capital: Rs 50 crore
Features:
  • Besides travelling people, various cement, steel, power plants etc. would get the necessary rail link for transportation of raw material and finished products.
  • Formation of project-specific special purpose vehicles (SPVs) with equity holding by other stakeholders including banks, ports, public sector undertakings and mining companies.
*Points to Remember: Indian Railways
It is one of the world’s largest railway networks comprising 115,000 km of track over a route of 65,808 km and 7,112 stations
Minister of Railways: Suresh PrabhakarPrabhu

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