TN off track with Centre on JV to speed up rail projects

TN off track with Centre on JV to speed up rail projects

Tamil Nadu is yet to agree to the terms and conditions proposed by the Ministry of Railways to set up a joint venture company to speed up railway projects in the state. The ministry has been urging the government to sign the agreement for close to a year.

Talks are on between the government and the railways to set up a joint venture. However, it is getting delayed as the government is not agreeing to the proposed to a 50-50 partnership in investment for the projects.

A similar venture, Kerala Rail Development Corporation (KRDC), between the rail ministry and the Kerala government with an equity participation of 49:51 ratio, meanwhile, is on track. The ministry and that state are in the process of finalising a detailed project report.

Southern Railway general manager R K Kulshrestha, at a press conference to explain the achievements of the zone, on Wednesday, said, the ministry had suggested a similar joint venture company for Tamil Nadu. Read More

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