{"id":35531,"date":"2016-02-11T15:50:39","date_gmt":"2016-02-11T10:20:39","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=35531"},"modified":"2016-03-05T13:02:21","modified_gmt":"2016-03-05T07:32:21","slug":"mou-signed-between-ministry-of-railways-and-governments-of-telangana-for-formation-of-joint-venture-companies","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2016\/02\/11\/mou-signed-between-ministry-of-railways-and-governments-of-telangana-for-formation-of-joint-venture-companies\/","title":{"rendered":"MoU signed between Ministry of Railways and Government of Telangana for \u201cFormation of Joint Venture Companies"},"content":{"rendered":"<p style=\"text-align: justify;\">Memorandum of Understanding<strong>\u00a0(<\/strong>MoU) between Ministry of Railways and State Government of Telangana\u00a0for \u201c<em>Formation of Joint Venture Companies for Development of Railway Infrastructure in the State<\/em><em>\u00a0of Telangana\u201d<\/em>\u00a0has been signed 11.02.2016.<\/p>\n<p style=\"text-align: justify;\"><strong>Salient Features<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>In view of the growing demands for railway lines in various states and huge requirement of funds to execute them, Minister for Railways announced in his budget speech regarding setting up of Joint Ventures with states for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects.<\/li>\n<li>17 State Governments consented for formation of Joint Venture Companies in collaboration with the Ministry of Railways for development of rail infrastructure in their respective States.<\/li>\n<li>MoUs have already been signed by the Ministry of Railways with the State Governments of Odisha, Maharashtra, Andhra Pradesh, Kerala and Chhattisgarh.<\/li>\n<li>The MoU envisages formation of a Joint Venture companies having 51% stakes of the respective State Government and 49% stakes of Ministry of Railways. Thus, the JV companies shall be fully owned by the Government. The companies will primarily identify projects and possible financing avenues in addition to Govt of India and the State Governments. After finances for a project are tied up, project specific SPVs or special purpose vehicles shall be formed. These SPVs can have other stake holders from Industries, Central PSUs, State PSUs etc. However, the JV companies shall be\u00a0 mandatory stake holders with minimum 26% shares in the SPVs.<\/li>\n<li>The Ministry of Railways will sign a concession agreement of 30 years with the project SPV for safe and sound operation, revenue sharing and providing technical &amp; marketing logistics to the SPV. The revenue sharing shall be based on already established formula being used for inter zonal apportionment of revenue.<\/li>\n<li>The most important aspect of this MoU is that the ownership of the land shall vest with the SPVs which is a departure from previous practice. This will give financial leverage to the company to exploit commercial potential of the land.<\/li>\n<li>At the end of concession period, the railways will have option to take over the assets at a nominal price. This is largely in line with average codal life of the assets as most of the assets will need large scale replacement after 30 years.<\/li>\n<li>To expedite the projects, Railways have been trying to mobilize resources through other than Gross Budgetary Support. However, on the initiative of Minister for Railways Sh. Suresh Prabhu, Indian Railways have tied up funds for critical capacity enhancement project of doubling, third line , electrification etc. An MoU was signed with LIC of India and we have already taken first tranche of Rs 2000 Cr for these projects. This tied up loan will ensure dedicated and assured funding for such critical projects.<\/li>\n<li>Indian Railways have targeted to commission 2000 Km New Lines, 4000 Km Gauge Conversion and 11000 Km Doubling\/Tripling\/ Quadrupling projects over 5 years i.e. from 2015-16 to 2019-20.<\/li>\n<li>Formation of Joint Venture Companies with the State Governments will go a long way in faster commissioning of critical rail infrastructure projects as it will not only help in mobilization of funds but also in facilitating various clearances and land acquisition.<\/li>\n<\/ul>\n<p style=\"text-align: right;\"><strong>-Press Information Bureau<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Memorandum of Understanding\u00a0(MoU) between Ministry of Railways and State Government of Telangana\u00a0for \u201cFormation of Joint Venture Companies for Development of Railway Infrastructure <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,8],"tags":[],"class_list":["post-35531","post","type-post","status-publish","format-standard","hentry","category-news","category-treaties_conventions_internationalagreements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MoU signed between Ministry of Railways and Government of Telangana for \u201cFormation of Joint Venture Companies | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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signed between India and Slovak Republic for technical cooperation in the Railway Sector","author":"Sucheta","date":"August 19, 2015","format":false,"excerpt":"On 12.08.2015, a Memorandum of Understanding was signed between India and Slovak Republic on technical cooperation in railway sector. The MoU signed between the Ministry of Railways, Government of India and the Ministry of Transport, Construction and Regional Development of the Slovak Republic is valid for a period of two\u2026","rel":"","context":"In &quot;Treaties\/Conventions\/International Agreements&quot;","block_context":{"text":"Treaties\/Conventions\/International Agreements","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/treaties_conventions_internationalagreements\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7270,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/08\/14\/mou-s-signed-by-indian-railways-to-save-power-and-improve-efficiency\/","url_meta":{"origin":35531,"position":1},"title":"MoU\u2019s signed by Indian Railways to save power and improve efficiency","author":"Sucheta","date":"August 14, 2015","format":false,"excerpt":"On 12.08.2015, four Memorandum of Understandings were signed between Ministry of Railways, Ministry of Power & Ministries of New & Renewable Energy and their organizations for cooperation in the areas of Electricity Transmission, Energy Conservation and promotion of Renewable Energy in a time bound manner. MoU between Ministry of Power\u2026","rel":"","context":"In &quot;Treaties\/Conventions\/International Agreements&quot;","block_context":{"text":"Treaties\/Conventions\/International Agreements","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/treaties_conventions_internationalagreements\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":27621,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/12\/05\/ministry-of-railways-commits-towards-conservation-of-water\/","url_meta":{"origin":35531,"position":2},"title":"Ministry of Railways commits towards conservation of water","author":"Sucheta","date":"December 5, 2015","format":false,"excerpt":"On 3-12-2015, a Memorandum of Understanding (MoU) regarding use of Non-potable water released after treatment from sewage\/effluent treatment plants located in Ganga and Yamuna River zones for Railway purpose was signed between Ministry of Railways and Ministry of Water Resources, River Development & Ganga Rejuvenation. The MoU provides that water\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":221617,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/31\/ministry-of-railways-signs-memorandum-of-understanding-with-indian-school-of-business\/","url_meta":{"origin":35531,"position":3},"title":"Ministry of Railways signs Memorandum of Understanding with Indian School of Business","author":"Bhumika Indulia","date":"October 31, 2019","format":false,"excerpt":"The MoU signed formalizes a strategic partnership between Indian Railways and Indian School of Business (ISB) Ministry of Railways and the Indian School of Business (ISB) signed a Memorandum of Understanding (MoU)here today for a strategic partnership. It was signed by Shri Vinod Kumar Yadav, Chairman, Railway Board and Professor\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29181,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/12\/14\/mou-signed-between-india-and-japan-for-cooperation-in-railway-sector\/","url_meta":{"origin":35531,"position":4},"title":"MoU signed between India and Japan for cooperation in Railway Sector","author":"Sucheta","date":"December 14, 2015","format":false,"excerpt":"India and Japan signed three Memorandum of Understandings (MoUs) during December 11-13, 2015 for cooperation in the Railway Sector. The details of cooperation envisaged in the three Memorandums are as follows: MoU on cooperation and assistance in the Mumbai \u2013 Ahmedabad High Speed Rail Project(referred by many as Bullet Train\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7035,"url":"https:\/\/www.scconline.com\/blog\/post\/2014\/11\/19\/mou-signed-between-india-and-korea-for-technical-co-operation-in-the-rail-sector\/","url_meta":{"origin":35531,"position":5},"title":"MoU signed between India and Korea for Technical Co-operation in the Rail Sector","author":"Sucheta","date":"November 19, 2014","format":false,"excerpt":"On 17 November 2014, a Memorandum of Understanding was signed between the Ministry of Railways, Government of India and the Ministry of Land Infrastructure and Transport (MOLIT) of the Government of Republic of Korea (South Korea) in Seoul. 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