BHUBANESWAR: The State Government has sought an allocation of Rs 200 crore from the Centre for financing the Special Purpose Vehicle (SPV) on railway lines.
The State Government had signed a memorandum of understanding (MoU) with the Ministry of Railways on November 4, 2015 at New Delhi to set up SPV on cost sharing basis for development of railway infrastructure.
The State Government has 51 per cent share in the SPV while the Centre would contribute 49 per cent. As per the MoU, measures will be taken for rail connectivity to backward districts of Odisha which include Malkangiri, Nabarangpur, Kandhamal, Deogarh, Boudh and Kendrapara. Initially, `200 crore will be invested in the SPV to take up projects.
Minister of State for Commerce and Transport Ramesh Chandra Majhi said some of the incomplete projects will be taken up by the SPV. Majhi said steps will be taken to launch the Jeypore-Nabarangpur and Jeypore-Malkangiri railway line projects as promised by the BJD in its election manifesto.
To ensure rail connectivity to the tribal districts, the State Government had announced to bear 50 per cent and 25 per cent of the construction cost of the Jeypore-Nabarangpur and Jeypore-Malkangiri lines respectively.
On April 20, 2014, the State Government had signed an MoU with the Ministries of Railways and Coal for formation of a joint venture (JV) for development of railway infrastructure in coal-bearing areas.
In addition to that, another MoU was signed between the State Government and the Ministry of Railways to implement the long-pending Khurda Road-Balangir project.
The State Government has also formed another SPV with Mahanadi Coalfields Limited (MCL) and Rail Vikas Nigam Ltd (RVNL) for evacuation of coal from Jharsuguda and Telcher regions. The State has 10 per cent equity in the SPV. The Ministry of Coal or its PSU – MCL – a Coal India subsidiary, has 64 per cent stake while the Ministry of Railways through its PSU – RVNL – holds 26 per cent equity.