Senior officials said projects being executed by the Railways would continue to be undertaken by it though the future funding for it would be provided under NRVY.
Rail Vikas Nigam Ltd (RVNL), a special purpose company, has been floated by the Railways for executing the programme. RVNL will be deciding on the model on which future models will be taken up.
The Railways is currently finalising the organisational structure for RVNL. Once this process is over, RVNL will be studying the scope of domestic and other forms of borrowings by the Railways.
We will prefer that private companies with their resources take up infrastructure works. We are not just looking at financing projects through debt, said an official.
RVNL will be forming SPVs for some projects where other companies participate through equity. This may be possible especially in the case of port connectivity projects and wherever industries, which are beneficiaries of a project, agree to be part of the SPV.
The company will have an equity of Rs 3,000 crore which will be put in by the Railways through budgetary support. Other sources of funding will include borrowings from the domestic and international market besides multilateral lending.
The Asian Development Bank (ADB) had a few months back approved $313.6 million loan to the Railways for four projects. The bank has plans of putting in about $1 billion (about Rs 4,500 crore) till 2008.
NRVY includes upgradation and strengthening of saturated golden quadrilateral (GQ) and its diagonals at the cost of Rs 8,000 crore, construction of four mega bridges at the cost of Rs 3,650 crore, port connectivity and multimodal rail corridor at Rs 3,000 crore; and completion of last mile projects at Rs 763 crore.
The GQ will connect four metro cities of Delhi, Kolkata, Chennai and Mumbai including diagonals. It involves doubling of single line patches, laying of multiple lines wherever required, setting up of terminal/junction stations and raising of speed for freight trains to 100 km per hour.