Railways forms JV with Chhattisgarh govt

Railways today joined hands with the Chhattisgarh government for laying of 762 km-long rail line in the state as part of the rail infrastructure development plan.
"There is a need for rail expansion in a big way in the country as people's inspirations are also increasing," Railway Minister Suresh Prabhu said after signing the MoU with Chhattisgarh government here.
The MoU envisages formation of a joint venture company with the state for execution of rail projects. The JV companies will have 51 per cent stake of the state government and 49 per cent of Railways.
Chhattisgarh Chief Minister Raman Singh along with senior state government officials was also present on the occasion.

The governments of 17 states have consented to formation of joint venture companies with Railways for rail infrastructure development.
Chhattisgarh is the fifth state to join hands with the Railways for speedy execution of rail projects through JV route.

Thanking the CM for accepting the railway's offer to take the JV initiative further, Prabhu said it will not only be beneficial for the state but also the nation and its economy.
He said Chhattisgarh was one of the few states with rich natural resources, including minerals.
"There are many countries which have less natural resources than us but are still ahead of us in economy. So in order to realise the state's potential, evacuation (minerals) is necessary," the Railway Minister said.

The Chhattisgarh CM said the initiative will help in speedy implementation of rail projects in the state.
"The three rail corridors involving 762 km will improve the connectivity in the state as well as country," he said.
On being asked whether the naxal problem will affect the rail projects in the state, Singh said, "The problem is there but we are still managing train operations. When development takes place, the problem will disappear. Wherever railways goes development takes place."
In view of the growing demand for railway lines in various states and huge requirement of funds to execute them, JV companies will be now responsible for identifying projects, land acquisition and possible financing, in addition to government funding and monitoring.

Railways has got the cabinet approval for formation of JV companies with states for implementation of rail projects.