Indore: Three major railway projects – Indore-Manmad, Indore-Jabalpur and Fatehabad-Ujjain – with an estimated cost Rs 15,000 crore will be executed by a joint venture company (JVC) of MP state government and Indian Railways.
The state government has endorsed proposal of inking a Memorandum of Understanding (MoU) to constitute a joint venture company of Indian Railways and MP State government in its cabinet meeting held on Tuesday.
At present the state has an average rail network of just 16 km per 1000 sq km In JV the state government and Railway will have 51% and 49% stake respectively. State chief secretary will be chairman of the JVC.
A senior railway official told this correspondent that constitution of JVC was awaited since last one year, as neighboring state Maharashtra have already signed a MoU with Railways an year ago.
Though the formation of JVC is delayed, railway has already announced three projects – Mhow-Manmad (339 km, commonly known as Indore-Manmad), Indore-Jabalpur (340 km) and Fatehabad-Ujjain (22.98km) – have already got approval in railway budget 2016-17. While giving approval to these projects railway minister Suresh Prabhu had announced that the projects would be completed in partnership with state governments concerned.
The cost of Mhow-Manmad new rail line project is estimated to be Rs 10,000 crore. At present final location survey is going on and expected to complete it by July this year and tender for the project is likely to be floated by the end of this year.
Indore-Jabalpur via Dewas-Kannod-Narsinghpur rail line project’s estimated cost is Rs 4000 crore. Rs 50 lakh have been allocated in the Union Budget for its initial survey. Similarly, Fatehabad-Ujjain gauge conversion project’s estimated cost is Rs 100 crore and Rs 1 crore have been allocated for this project in the budget.
JVC will look into the work of surveys, preparations of detail project reports, financial management and other modalities of the rail network projects. The trains will be run by the Railways
The JV will be responsible only for commissioning of railway tracks while trains will be run by the Indian Railways. The company will conduct surveys, prepare detailed projects and manage the monetary affairs. The company may take loan for the projects.
“Joint Venture Company of MP government and Indian Railways would execute three railway projects concerned to the city – Indore-Manmad, Indore-Jabalpur and Fatehabad-Ujjain.”
Nagesh Namjoshi, Member railway board’s passenger service committee