The Ministry of Railways recently signed two Memoranda of Understandings with the State Governments of Andhra Pradesh and Kerala respectively for the purpose of formation of joint venture companies for development of railway infrastructure in the States of Kerala and Andhra Pradesh. In view of the growing demands for railway lines in various states and huge requirement of funds to execute them, the Ministry of Railways in its budget proposed the setting up of joint venture companies with states for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects. 17 State Governments consented to the proposal of forming joint venture companies in collaboration with the Ministry of Railways for development of rail infrastructure in their respective States. MoUs have already been signed for the formation of the joint venture companies with the State Governments of Odisha and Maharashtra. The MoUs envisage formation of a joint venture companies having 51% stakes of the respective State Government and 49%.
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