Lok Sabha Question No. 120 (UNSTARRED), answered on 2016-02-24
Subject: Formation of Joint Venture Companies
Ministry: RAILWAYS
Asked by: SUKENDER REDDY GUTHA, SUPRIYA SADANAND SULE, VINAYAK BHAURAO RAUT, T. RADHAKRISHNAN, GOPALAKRISHNAN CHINNARAJ, VINOD KUMAR BOIANAPALLI, HEENA VIJAYKUMAR GAVIT, VIJAYSINH MOHITE PATIL, RAHUL RAMESH SHEWALE, DHANANJAY BHIMRAO MAHADIK, RAMACHANDRAN MULLAPPALLY, RAJEEV SHANKARRAO SATAV, Shrirang Appa Barne, (ADV.) JOICE GEORGE, NAGENDRA KUMAR PRADHAN, DHARMENDRA YADAV, SHRIKANT EKNATH SHINDE, SHIVAJI ADHALRAO PATIL, ANANDRAO  ADSUL

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 120 TO BE ANSWERED ON 24.02.2016

## FORMATION OF JOINT VENTURE COMPANIES

## 120.  SHRI GUTHA SUKENDER REDDY:

SHRIMATI SUPRIYA SULE:

SHRI VINAYAK BHAURAO RAUT:

SHRI T. RADHAKRISHNAN:

DR. C. GOPALAKRISHNAN:

SHRI B. VINOD KUMAR:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRI RAHUL SHEWALE:

SHRI DHANANJAY MAHADIK:

SHRI MULLAPPALLY RAMACHANDRAN:

SHRI SATAV RAJEEV:

SHRI SHRIRANG APPA BARNE:

ADV. JOICE GEORGE:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI DHARMENDRA YADAV:

DR. SHRIKANT EKNATH SHINDE:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI ANANDRAO ADSUL:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether the Indian Railways has signed any Memorandum of Understanding (MoU) with the State Governments to form Joint Venture (JV) companies for speedy implementation of rail projects;
- (b) if  so,  the  details  thereof and the criteria fixed for setting up of such JV companies;
- (c) the manner in which these Joint Venture companies will work and areas identified for joint venturing with the States and the extent to which the Railways  will  be  able  to  mobilize  funds  for  their  projects  with  these agreements;

(d) the details of the State Governments who have signed MoU with Railways for formation of JV companies and the time by which JV companies are likely to be formed; and

(e) the  other  steps  taken/being  taken  by  the  Government  for  effective  and speedy implementation of rail projects in the country?

ANSWER MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) to (e):   A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  120  BY  SHRI  GUTHA  SUKENDER  REDDY,  SHRIMATI SUPRIYA SULE, SHRI VINAYAK BHAURAO RAUT, SHRI T. RADHAKRISHNAN, DR. C. GOPALAKRISHNAN, SHRI B. VINOD KUMAR, DR. HEENA VIJAYKUMAR GAVIT, SHRI MOHITE PATIL VIJAYSINH SHANKARRAO, SHRI RAHUL SHEWALE, SHRI DHANANJAY MAHADIK, SHRI MULLAPPALLY RAMACHANDRAN, SHRI SATAV RAJEEV,  SHRI  SHRIRANG  APPA  BARNE,  ADV.  JOICE  GEORGE,  SHRI  NAGENDRA KUMAR  PRADHAN,  SHRI  DHARMENDRA  YADAV,  DR.  SHRIKANT  EKNATH  SHINDE, SHRI ADHALRAO PATIL SHIVAJIRAO AND SHRI ANANDRAO ADSULTO BE ANSWERED ON 24.02.2016 REGARDING FORMATION OF JOINT VENTURE COMPANIES. (a)  to  (e):  Ministry  of  Railways  (MoR)  has  signed  Memorandum  of  Understanding (MoU)  for  formation  of  Joint  Venture  Companies  with  six  State  Governments  viz. Odisha, Maharashtra, Andhra Pradesh, Kerala, Chhattisgarh and Telangana. Joint Venture Company will be formed with equity participation of MoR (limited to  maximum  50%)  and  concerned  State  Government(s).      JVs  can  form  project specific  subsidiary  companies  (Project  SPVs),  which  may  have  equity  holding  by other stakeholders like banks, PSUs, Ports, mining companies etc. as well, to cater to a specific project. Each  JV  would  have  an  initial  paid  up  capital  of ` 100  crore.    Based  on  the quantum of projects to be undertaken, the authorized equity share capital and the paid  up  capital  can  be  enhanced  from  time  to  time  with  the  approval  of  Railway Board and the State Government. JVs  would  undertake  project  development  works  for  an  identified  basket  of projects, which will inter-alia include surveys, preparation of Detailed Project Report (DPR)  and  getting  requisite  approvals,  processing  for  sanctioning  of  identified projects  and  monitoring.    Projects  will  be  implemented  by  the  concerned  Zonal Railway, any Railway PSU or any other agency as decided by the JV/Project SPV in consultation with Ministry of Railways. Various  other  steps  taken/being  taken  by  the  Government  for  effective  and speedy implementation of rail projects in the country are (i) substantial increase in allocation  of  funds,  (ii)  prioritisation  of  projects,  (iii)  delegation  of  powers  at  field level,  (iv)  nomination  of  nodal  officers  for  improved  co-ordination  with  the  State

Governments etc.

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