Railways want states to share costs for special projects

The Railway ministry on Monday said that it would consider special projects in states provided the governments concerned share costs of the construction related to gauge conversion or lines to expedite it.

“If a particular state wants a special railway project for public purpose, the ministry will consider and execute it on the basis of cost sharing model so that the project is executed and commissioned on time,” Minister of State for Railways K H Muniyappa told reporters here.

If the cost is shared by the state concerned and the ministry, the project can be completed on priority basis.

The ministry is also open to share the profit with the state, Mr. Muniyappa said, adding that such projects will be launched by specially created special purpose vehicles (SPV) between the ministry and the state concerned.

“We have launched some projects in Karnataka, Andhra Pradesh and Jharkhand where the respective state governments have agreed to share 50 per cent costs,” he said.

Meanwhile, the Gujarat government and Kandla and Mundra ports have approached the ministry to double the 300 km Palanpur—Dhandhidham broad gauge line, set up on public private partnership between the ministry, the state government and the two ports, the minister said.

“The Gujarat government and other stake holders want to double the line so that freight transportation can be expedited on the special route,” he said.