Indian Railways today joined hands with Haryana seeking speedy execution of viable rail projects in the state in a joint venture model.
“We can execute projects at a faster pace with state’s cooperation. Unless we get that, people’s aspirations will not be fulfilled,” Railway Minister Suresh Prabhu said here at a ceremony for signing an MoU with the Haryana government.
It was signed between them for constitution of a joint venture entity for development of rail infrastructure in the state.
Haryana becomes the seventh state to have signed an MoU with the Railways to execute such projects in a joint venture mode.
Earlier Odisha, Maharashtra, Chhattisgarh, Andhra, Telangana and Kerala had signed such agreements with the Railways.
The MoU envisages formation of the joint venture having 51 per cent stake of the state government and 49 per cent of the railways. The JV company shall be fully owned by the government. It will primarily identify projects and possible financing avenues in addition to those from the state and the Centre.
After finances for a project have been set up, project specific SPVs (special purpose vehicles) shall be formed. These SPVs can have other stake holders from industries, Central PSUs and state PSUs.
Describing the arrangement as “cooperative federalism”. Prabhu said “the state will become the joint partner with 51 per cent stake in the project. It will be done not only on cost sharing basis but also on ownership basis.”
Harayana Chief Minister M L Khattar described it as an “important occasion” and said “now all viable rail projects will be executed in joint venture model with the Railways in the state.”
Khattar further said “the new system will speed up the project implementation in the state.”
Highlighting the importance of forming joint venture with state governments, Prabhu said, “There will be a dedicated officer for each state for effective coordination with the state.”
According to railways, the MoU is expected to speed up execution of proposed rail factory in Haryana.