Railways signs MoU with AP, Kerala for rail projects

The Indian Railways has said that it has signed MoUs with Kerala and Andhra Pradesh Governments for formation of joint venture companies to ensure faster implementation of rail projects in the respective states. As per reports, the JV companies will have 51 per cent stake of the respective state governments and 49 per cent stake of the railways. Commenting on the issue, Railway Minister Suresh Prabhu told the media, "It is always necessary to have partnership with state governments and we have declared it in our Rail Budget." "We will have this with 17 states. We have decided to work together. It is a unique idea to enter into JVs with state governments for project implementation," he added. As per the plan, project specific SPV (special purpose vehicle) will be formed to execute a project under the JV arrangement. Earlier, Odisha and Maharashtra had signed similar agreements with the railways to execute projects in their respective states.