Railway undertakes 40 projects worth Rs 60,000 on cost-sharing with states

Encouraging participation of states in rail projects, Indian Railway has taken up more than 40 projects worth over Rs 60,000 crore on cost-sharing basis with state governments.

As on April 1 this year, 41 railway projects involving laying of new lines in about 5,650 km have been taken up on cost-sharing basis with state governments, said a senior Railway Ministry official.

In a departure from earlier practice, railways now encourage state governments to become equal partners in projects to expedite the execution.

The total cost of these new projects is Rs 60,850 crore and an outlay of Rs 4,317 crore has been provided in the Rail Budget for 2016-17.

The official said all these projects are progressing as per availability of resources.

Every railway project requires a number of clearances from various departments of state and central governments, including those related to land acquisition. Forestry clearance and permission from departments like National Highway Authority of India, Public Works Department, irrigation and sometimes from Archaeological Survey of India are needed if the alignment is in the vicinity of a protected monument. Local bodies grant permission for projects passing through urban areas.

The official said, "The state government's participation helps in expediting clearances from state departments."

Since railway projects straddle over more than one state, projects are not sanctioned state-wise.

During the last three years since 2013-14, 5,305 kms of new lines have been included in the Railway Budget.

Railways have a large throw forward of ongoing projects vis-a-vis availability of resources from Gross Budgetary Support (GBS).

Facing financial crunch in completing the ongoing projects, the railways had approached state governments to form Joint Venture Companies (JVCs) to undertake mutually identified rail infrastructure projects.