NEW DELHI, June 2: Railways today joined hands with Haryana
seeking speedy execution of viable rail projects in the state in a joint
"We can execute projects at a faster pace with state's cooperation. Unless
we get that, people's aspirations will not be fulfilled," Railway Minister
Suresh Prabhu said here at a ceremony for signing an MoU with the Haryana
It was signed between them for constitution of a joint venture entity for
development of rail infrastructure in the state.
Haryana becomes the seventh state to have signed an MoU with the Railways to
execute such projects in a joint venture mode.
Earlier Odisha, Maharashtra, Chhattisgarh, Andhra, Telangana and Kerala had
signed such agreements with the Railways.
The MoU envisages formation of the joint venture having 51 per cent stake of
the state government and 49 per cent of the railways. The JV company shall be
fully owned by the government. It will primarily identify projects and possible
financing avenues in addition to those from the state and the Centre.
After finances for a project have been set up, project specific SPVs (special
purpose vehicles) shall be formed.
These SPVs can have other stake holders from industries, Central PSUs and state
Describing the arrangement as "cooperative federalism".
Prabhu said "the state will become the joint partner with 51 per cent
stake in the project. It will be done not only on cost sharing basis but also
on ownership basis."
Harayana Chief Minister M L Khattar described it as an "important
occasion" and said "now all viable rail projects will be executed in
joint venture model with the Railways in the state."
Khattar further said "the new system will speed up the project
implementation in the state."
Highlighting the importance of forming joint venture with state governments,
Prabhu said, "There will be a dedicated officer for each state for
effective coordination with the state."
According to railways, the MoU is expected to speed up execution of proposed
rail factory in Haryana.