The Indian Railways is introducing the idea of forming a special purpose vehicle (SPV) between the Government of India (through Indian Railways) and the State government, which can take up projects important for that State, said Minister for Railways Suresh Prabhu.
Speaking at an event to flag off four new trains from Bengaluru, he said State and Central governments will both have equity in the SPV and the entity can borrow to fund projects for the Railways. The SPV can also involve various ministries, such as the Ministry of Oil and Natural Gas, or Steel.
He said, “Most States have agreed to this, including Telangana, Andhra Pradesh and Kerala.”
Further, any railway station can be developed on a public-private-partnership (PPP) model with Indian Railways, State and a private company as participants.
The private partner could design and develop the initiative. The Railways is willing to discuss the revenue-sharing between itself and the private company.
He said companies and chambers of commerce and industry could help develop railway stations under corporate social responsibility, by sponsoring toilets and drinking water at stations.