The NDA Govt Cabinet on Wednesday Dec 30,2015 approved the formation of joint venture
companies with various state governments to mobilise resources for
undertaking rail infrastructure projects.
The initial paid-up capital of the Ministry of Railways will be limited
to ₹50 crore for each state. The joint venture companies would be formed
with equity participation from the Ministry of Railways and the state
governments concerned. Each joint venture will have an initial paid-up
capital of ₹100 crore and based on the projects to be undertaken,
further fund infusion would be done on approval of the project.
The joint ventures will be allowed to form project-specific special
purpose vehicles with equity holding from other stakeholders such as
banks, ports, public sector undertakings, mining companies, and others.
“This would ensure greater participation of state governments in
implementation of railway projects, both in terms of financial
participation as well as the decision-making process. This will also
facilitate faster statutory approvals and land acquisition,” an official
statement added.
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