Hello and welcome to the Current Affair's Portal of ExamPundit.in. Railway Ministry on 9 February 2016 signed Memorandum of Understanding (MoU) with Chhattisgarh Government for formation of Joint Venture Companies for development of railway infrastructure in the state.
The Joint Ventures with states for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects.
The MoU envisages formation of a Joint Venture companies having 51 percent stakes of the respective State Government and 49 percent stakes of Union Ministry of Railways. Thus, the JV companies shall be fully owned by the Government.
The ministry of Railways will sign a concession agreement of 30 years with the project SPV for safe and sound operation, revenue sharing and providing technical & marketing logistics to the SPV. The revenue sharing shall be based on already established formula being used for inter zonal apportionment of revenue.
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