Special purpose vehicle may be a corporation, company or a board.
The state government is planning to float a special purpose vehicle (SPV) to cater to the growing needs of developing rail infrastructure in view of the mammoth industrial activity the state going to see in the days to come. Railway is an important link for industrial growth and the government says it understands the urgency.
Rail link is vital as projects like Dedicated Freight Corridor (DFC) and Delhi-Mumbai Industrial Corridor (DMIC) are coming up. It is also required to be in place to connect to state's important ports, special investment regions (SIRs) and special economic zones (SEZs).
"At present, the state government's demands for 12 major railway infrastructure projects are pending with the ministry of railways and a number of new proposals for faster infrastructure development are likely to be drafted in near future. Looking at all these requirements, the state government is planning to set up an SPV in suitable form which will take up crucial rail infrastructure projects with the ministry of railways, Rail Vikas Nigam and in PPP (public private partnership) mode," said highly placed sources.
The government of Gujarat has already initiated similar project by forming Kutch Railway Company (KRC) which is a joint venture of Rail Vikas Nigam Ltd, Kandla Port Trust, and Gujarat Adani Ports Ltd. The company has been conferred with the rights of railway administration under the Railway Act 1989.
Rail Vikas Nigam Limited (RVNL), a 100% subsidiary of ministry of railways, has also formed an SPV, Bharuch-Dahej Railway Company Limited (BDRCL), to implement the 62.36 km Bharuch-Samni-Dahej gauge conversion project in Gujarat. With the country's first chemical port being developed at Dahej with deep draft facilities, it is being developed as a major chemical and petrochemical sea terminal. An MoU was signed on January 13, 2005 between Rail Vikas Nigam Limited, Gujarat Industrial Development Corporation and Gujarat Maritime Board for implementing the gauge conversion project.
According to the sources, the SPV may be either a company or a corporation or a board.
"The government is yet to decide on the form and exact scope of the SPV. There is also consideration to link this proposed SPV with Metro Link Express for Gandhinagar and Ahmedabad (MEGA),'' they said.
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