In order to give the necessary boost to the railway sector and for the purpose of expediting the completion of railway projects, the Ministry of Railways has proposed to all the State Governments to incorporate Special Purpose Vehicles (SPV) together with the Ministry of Railways. These SPVs will then undertake the rail infrastructure projects which will be mutually agreed on by and between the Ministry of Railways and the State Governments.
Pursuant to the Ministry of Railway's proposal, 17 State Governments have agreed to form the proposed SPVs together with the Ministry of Railways.
Once the Union Cabinet approves this proposal, the SPVs in the nature of joint ventures between the Ministry of Railways and the State Governments shall be implemented.
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