Odisha to float Rail SPV as per Centre’s proposal
Bhubaneswar: In a bid to expand railway network in Odisha, the State government has accepted the Union Railway minister Suresh Prabhu’s proposal to float a special purpose vehicle (SPV) in association with the Railway ministry.
“The government has sent a letter to the Railway ministry on January 8 informing the State’s acceptance of forming the SPV,” said State Commerce and Transport minister Ramesh Majhi.
As per the proposal from the Railway minister, the State government would have 51% share in the SPV whereas the Centre would investment the rest in it.
Rail coordination commissioner Sanjay Mohapatra said, “The Centre has sent a proposal to all the States. But Odisha is the first one to accept it.”
The SPV will increase the railway network here as profit out of operation on new lines will be utilized here in the State, he further said, adding that the amount will not be included in the rail budget.