With the aim to develop railway infrastructure in Kerala, railways today signed a Joint Venture Agreement with the state government.
Describing the agreement as an example of "cooperative federalism" Railway Minister Suresh Prabhu said "Kerala has been neglected for too long and now concerted efforts are needed to develop its railway infrastructure."
Governments of Odisha, Haryana, Chhattisgarh and Gujarat have already signed JV agreement with the Railways for execution of rail projects in states.
Prabhu said Railway Ministry has given maximum allocation to Kerala during 2014-15 to 2016-17.
Setting up of JVs is expected to help in identifying requirement of states keeping in line with other plans, finding avenues for funding of railway projects.
Prabhu further said that Railways is also working on the re-development of Kochi and Ernakulam Stations in Kerala.
In order to expedite the projects, Railways have been trying to mobilize resources through other than Gross Budgetary Support. Towards this mission, 10 State Governments have till now agreed to share the cost of 41 ongoing projects ranging from 25 per cent to 67 per cent of the project cost. Some States are providing land free of cost in addition to sharing of construction cost.
Speaking on the occasion, Chairman Railway Board (CRB) AK Mital said "Today's JV Agreement will certainly fulfill the railway transport needs of the people of Kerala.
Mital said that Railways want to extend railway network all over particularly in the States where demand is more and rail density is less.
The present railway network density in Kerala is 2.70 Km per 100 sq km which is above national average 2.01 Km per 100 square Km. However, it is an established fact that the railway network density in the country as a whole needs to be improved and the States coming forward in this regard is a welcome step.
CRB further said that railways has very limited resources and thus working in collaboration with the State Governments through JV Agreement can bring fruitful results for the people of the country.
Signing of these JVs will go a long way in developing infrastructure in the State of Kerala.
The average outlay to Kerala in Railway Budget was Rs 821.0 crore during 2014-15 to 2016-17 which is an increase of 121 per cent over the average outlay of Rs 371.9 crore during 2009-10 to 2013-14.
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