Chhattisgarh inks MoU with Indian Railways to form Joint Venture Company
Chhattisgarh Government has signed a memorandum of understanding (MoU) with Ministry of Railway to form a joint venture (JV) company for the expansion of railway tracks in the state.
With this Chhattisgarh became 5th state to join hands with the Indian Railways for speedy execution of rail projects through JV route.
Key facts
- Under the MoU, state government will have 51% share and Indian Railways will have remaining 49% share in the JV company.
- The proposed company will identify viable rail projects in the state and implement them. It will help state to meet is needs of connectivity and infrastructure development.
- This company is free to raise capital from the market to fund the works.
Background
- This MoU was signed as part of the rail infrastructure development plan of Indian Railways and shall lay around 762 km-long rail line in the state.
- Presently, Chhattisgarh has 1,187-km long railway line network which is less than half of the national average of rail density.
- So far, 17 state governments have consented to formation of joint venture companies with Indian Railways for development of rail infrastructure.
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Month: Current Affairs - February, 2016