Odisha accepts Centre’s proposal for SPV on Railways

Sambad English Bureau Published On : Jan 17, 2015 at 10:53 AM Updated On : Jan 17, 2015 at 11:28 AM

Odisha Sun Times Bureau
Bhubaneswar, Jan 17:

The Odisha government has accepted the proposal of the Union Railway ministry for formation of a special purpose vehicle (SPV) for expansion of the railway network and completion of the proposed and ongoing railway construction projects in the state.

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“The state government will act as per the proposal given by Railway minister Suresh Prabhu,” said Commerce and Transport minister Ramesh Majhi.

Majhi said the state government has informed the Railway ministry about the acceptance of its proposal in a letter on January 8.

As per the proposal of the Railway minister, the state government will have 51 percent of the share and the Centre the rest 49 percent in the proposed SPV.

Sanjay Mohapatra, commissioner, Railway Coordination, said Odisha is the first state to have accepted the proposal of the Railways.

He said the revenue accruing from the new projects will be utilized in Odisha and would not figure in the railway budget.

It may be mentioned that the Railway minister had proposed formation of a SPV in a statement in Rajya Sabha in the last Parliament session, which was accepted by Chief Minister Naveen Patnaik at a meeting with the Railway minister during his recent tour to New Delhi.

The Railway minister had told the Chief Minister during the meeting that the Railway Board had given a negative report on the proposed Nabarangpur-Jeypore railway line. He, however, had assured Patnaik that the proposed project would be worked out keeping the larger interests of the state in mind.