Indian Railways inks MoU with Odisha govt to jointly execute railway projects

Ministry of Railways on November 4, 2015 signed a memorandum of understanding (MoU) with Government of Odisha to form a special purpose vehicle (SPV) for implementation of railway projects in Odisha.
 
In view of the growing demands for railway lines in various states and huge requirement of funds to execute them, Railways Minister Suresh Prabhu had announced in his budget speech about setting up of joint ventures with states for focused project development, resource mobilisation, land acquisition, project implementation and monitoring of critical rail projects.
 
In line with this strategy, the ministry has signed the MoU with Odisha government. “Indian Railways has been playing a major role in national integration by connecting the remotest places and bringing people closer to each other. Railways receive a large number of demands for network expansion as a railway line acts as an engine of growth for the area it serves. MoU with Odisha government will go a long way in infrastructure development in the state,” said Suresh Prabhu.
   
Odisha, being a mineral rich state, is likely to be a major beneficiary of expanded rail infrastructure as the state has to bank on railways for transportation of ores and minerals. In fact, Railways Ministry has enhanced the outlay for development of network in Odisha in 2014-15 by about 40 percent to Rs 1073 crore as compared to Rs 754 crore in 2013-14. This year, it has been further enhanced by 3 times to Rs 3,310 crore (including EBRIF of Rs 2056 crore).