Aug 6, 2016

Joint Venture Agreement signed between Ministry of Railways and Government of Chhattisgarh for “Formation of Joint Venture Companies”

In the august presence of Minister of Railways, Shri Suresh Prabhakar Prabhu and Chief Minister of Chhattisgarh Shri Raman Singh, Joint Venture Agreement was signed between Ministry of Railways and State Government of Chhattisgarh for “Formation of Joint Venture Company”. On this occasion, Shri Piyush Goyal Union Minister of State (IC) for Power, Coal and New & Renewable Energy and Mines was also especially present on the occasion. Member Engineering Shri Aditya Kumar Mittal, other Board Members and Senior Officials were present. On behalf of the Railway Ministry Shri S.C.
Jain, Executive Director (Works) signed the JV Agreement whereas on behalf of Government of Chhattisgarh Shri Subodh Kumar Singh, Secretary, Department of Commerce & Industry, Govt. of Chhattisgarh and Secretary to Chief Minister, Government of Chhattisgarh signed the Agreement. The Agreement was signed in the background of Railway Minister’s Budget announcement regarding setting up of Joint Ventures with States for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects. 

Speaking on the occasion, Union Minister of Railways Shri Suresh Prabhakar Prabhu said that today’s agreement with the Chhattisgarh Govt. will accelerate the economy of the country, as Chhattisgarh is a State with abundant natural resources. He said that proper exploration and supply of coal and other excavation items can boost our economy. He said that to meet the demands of the people, it is better that all State Governments join hands with Railway Ministry and become partner with us. Signing of such Agreements is in line with the Prime Minister’s philosophy of cooperative federalism, he added. 

In his address, Shri Raman Singh, Chief Minister of Chhattisgarh thanked Ministry of Railways for supporting the State of Chhattisgarh for development of New Railway Infrastructure. He stated that 760 kilometre additional railway lines have been spread in the State of Chhattisgarh in a very short span of time which in itself is a record. He said that the improved railway network in the State has helped the State in processing the natural resources in its full potential. 

Speaking on the occasion, Shri Piyush Goyal Minister of State with Independent Charge for Power, Coal, New and Renewable Energy and Mines said that formation of JV Company in the State of Chhattisgarh will help in the improving congested rail lines, rail rakes. He said that due to the real effort of the Ministry of Railways, coal is available in all the power plants of the country that too with surplus stock. He said that signing of today’s Agreement is a very forward looking and visionary step. 

Background:- 

• In order to expand Railway network in States, Ministry of Railways has taken initiative for formation of JV Companies with States. 17 States have consented for formation of such companies and 8 states have signed MOUs with Ministry of Railways in this regard. 

• Today, Chhattisgarh has become the third state to sign JV Agreement with Ministry of Railways after Odisha and Haryana. 

• The JV Company will have 51% share from Government of Chhattisgarh and 49% from Ministry of Railways and will work in identifying projects which may be taken up in Chhattisgarh. The company will have its HQ at Raipur or Naya Raipur.