On important rail projects centre and state government to bear 50:50 cost

Ranchi: Chief Minister Hemant Soren has given his consent over the report which has been submitted by a high-level committee chaired by Development Commissioner over the future rail projects to be executed in the state and the cost to be incurred on them.

The committee has recommended that on important rail projects the cost would be borne by the central and state government in a 50:50 percent ratio. On the other hand, the committee has given detailed suggestions over providing rail connections in such district headquarters which do not have rail connectivity, starting important rail projects on a joint venture basis, identifying the rail projects in the state and making JRIDCL play an important role in this regard.

In the report of the committee, it has been said that such rail projects which can play an important role in social and economic development the cost on expenditure would be borne in the 50:50 ratio. In case the cost of the railway construction increases then it would be undertaken via a joint venture.

The committee has come up with reports to link the districts of Simdega, Chatra and Khunti with rail and on the other hand, the share of the state in projects of railways to be executed in far-flung areas would be reduced.

Such railway projects which are not financially viable but are important for critical connectivity, capacity enhancement and social and economic development would be taken on the debt-equity concept of the joint venture and funding for such projects would be accommodated via private and government stakeholders and loans.

JRIDCL will play an anchor role in identifying and developing rail projects which are important for the state in which the shareholding pattern of the state government and railways will be in the ratio of 51:49 and financial expenditures would be made on the basis of debt and equity.