Rail JVs: Rs 50 crore capital for each state

The Railways’ initial paid-up capital will be limited to '50 crores for each state. Further infusion of funds for the projects would be done only after its approval. Besides, the joint ventures can also form project-specific Special Purpose Vehicles (SPVs) with equity holding by other shareholders like banks, ports, public sector undertakings and mining companies.

The joint venture exercise would ensure greater state government participation in implementation of railway projects, both in terms of financial participation as well as the decision-making process. “This will also facilitate faster statutory approvals and land acquisition. Besides transporting people, various cement, steel, power plants would get the necessary rail link for transportation of their raw material and finished products,” the railway ministry said in a statement.