Railways Forms JV Companies with 12 States for Effective and Speedy Implementation of Rail Projects in Country

Railways Forms JV Companies with 12 States for Effective and Speedy Implementation of Rail Projects in Country

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Date of Post: 28 Sep, 2018

New Delhi: Railways has formed JV (Joint Venture) companies with 12 states with equity participation of 49:51 respectively for effective and speedy implementation of rail projects in the country, a senior official said.

Under this model, the first such project a new broad gauge electrified line of 294.53 route km from Katghora to Dongargarh was approved by the Cabinet on September 26 in Chhattisgarh.

More Information:

  • Mahesh Gupta, Member, Engineering, Railway Board, said,”We have started this model with share of 51% for the state and 49% for us. We have formed such companies with 12 states. In this we make the JV and then we tell the states to choose the line. After we are convinced, we decide to go ahead.”
  • Gupta said,”If the line is profitable, we take a loan through a special purpose vehicle. Railways will spend only Rs 350 crore out of the total Rs 5950.47 crore. The state will pay Rs 365 crore. There are coal companies which will get benefited that are also part of this.”
  • “So over all 25% of the cost is through equity and 75% is through loans. We will repay the loan in 20 years,” he said.
  • While the line in Chhattisgarh is primarily for goods trains, 2 pairs of passenger trains are being envisaged for the state as well.
  • The JVs for other states could be for both passenger or goods trains depending on the needs of the state government.
  • “In this model, the onus is on the state government to determine which line will be beneficial for them in terms of profit. If they propose a profitable line, we are happy to work with them,” he said.
  • Gupta said,”This is the model which would mean that the state governments and railways will together share the profits and bear the losses, if any.”
  • Maharashtra is likely to be the 2nd state to get the nod for a proposed line.
  • The other states with JVs are Assam, Andhra Pradesh, Chhattisgarh, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh and Odisha.

To know more about recent developments of  Railways-

24 Sep, 2018 : Railways Converts Jaynagar-Lokmanya Tilak Terminus Jan Sadharan Express into Antyodaya Express with LHB rakes

24 Sep, 2018 : Indian Railways to Install Latest Signalling System on Mathura-Vadodara Route

22 Sep, 2018 : ABB to Supply Equipment to Enhance Power Quality for India’s Western Dedicated Freight Corridor


Deepak Kumar is a part of the content team of Rail Analysis India as a writer and analyst .
His focus is on new initiatives on the Railway Sector of India .
Please reach us at editor@railanalysis.com for more information .


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