MP government to form JVC with railways

BHOPAL: Madhya Pradesh government will form a joint venture company (JVC) with the ministry of railways for expansion of railway network in the state.

“The state cabinet, chaired by chief minister Shivraj Singh Chouhan, on Tuesday gave its nod to the proposal of forming a JVC with the ministry of railways for expansion of railway network in the state,” MP finance minister Jayant Malaiya told reporters here.

The state government will have 51 per cent share and the railways remaining 49 per cent share in the JVC, he added.

“We will prepare the proposal of laying rail network and prepare projects according to priorities and requirements.

These projects would be implemented through this JVC,” said the minister.

To a question, Malaiya said the state government would arrange funds through different sources in addition to provision in the state budget.

“We have initially set up a fund worth Rs 100 crore for this JVC. The funds for the JVC projects would be arranged through the state’s kitty along with borrowing through financial institutions,” he added.

The minister further said this JVC would only be limited to implementation of rail network projects.

“This JVC would only be limited to the implementation of track expansion. The trains would be run by the railways,” he said.

According to this proposal, the state’s transport department is authorised to formalise the constitution of this JVC. Subsequently, this JVC would look into the work of surveys, preparations of detail project reports, financial management and other modalities of the rail network projects

source”cnbc”