Indian Railway signed a Memorandum of Understanding (MoU) with Chhattisgarh Government to establish a joint venture ( JV ) for laying tracks and expedite implementation of railway projects in the state. With this Chhattisgarh became 5th state to join hands with the Indian Railways for speedy execution of rail projects through JV route.
Under the MoU, state government will have 51% share and Indian Railways will have remaining 49% share in the JV company. The joint venture will focus on project development and implementation, resource mobilization, land acquisition and monitor the progress of critical rail projects in the state.
“In the entire history of the Indian rail network, Chhattisgarh has only around 1,180 km railways line. With the new MoU, 1,280 km railway line network will be built and the work which has not happened in the last 140 years will be made possible in the next five years,” said Raman Singh,Chief Minister.
Chhattisgarh has a lot of potential and the exploration and evacuation of its natural resources to other parts will help the country. “For this purpose, railway infrastructure needs to be developed which will not only help the state in availing better transport facility but also bring huge freight revenue to the Railways,” said Mr. Prabhu.
It will help state to meet is needs of connectivity and infrastructure development. This company is free to raise capital from the market to fund the works. So far, 17 state governments have consented to formation of joint venture companies with Indian Railways for development of rail infrastructure.