This is the meaning of the significant joint venture agreement the State has signed with the Railways recently.

The accord envisages the formation of a joint venture company with 51 per cent stake of the Kerala Government and 49 per cent stake of the Railways. The company will identify projects and possible financing avenues.

A notable feature of the agreement is that the JV will form Special Purpose Vehicles(SPVs) for each project. The SPVs will also have other stake-holders from industries, central Public Sector Undertakings and state PSUs.

The significant agreement is being construed as a firm step towards ending long-standing neglect of Kerala’s rail needs. That the state has languished for years because of Railways’ neglect has been admitted by no less a person than Railway Minister Suresh Prabhu himself.

As per the agreement, top priority is being accorded to Sabari rail project connecting Angamaly to Erumeli and the suburban rail project linking Thiruvananthapuram with Chengannur. While the former will gladden the hearts of lakhs of pilgrims headed for Sabarimala, the latter will go a long way to ease the traffic congestion in the Thiruvananthapuram-Chengannur route.

Among other projects which will receive focussed attention are Nilambur-Nanchangode rail project, Guruvayoor-Tanur railway line and the Integral coach factory to be formed in the state.

One of the main problems which have inhibited the growth of railway infrastructure in the state has been the failure of successive governments to acquire land for the purpose. The integral coach factory planned to be set up in Kanjokkode in Palakkad district, is, for instance, a victim of the failure to speedily acquire land. With the signing of the latest agreement with the Railways the unredeeming tale of past failures will, hopefully become a thing of the past.

Paucity of funds is the other factor which has affected development of railway infrastructure in the State. It is to address this pressing problem that the Railways have decided to go in for joint ventures with the States. The avowed objectives of this definitive step are focused development of rail projects, speedy land acquisition, resource mobilization and monitoring of critical rail projects.

The agreement is also in consonance with the Pinarayi Vijayan-led Left Democratic Front(LDF) Government’s mantra of development with accent on welfare measures for the poor and downtrodden. It was also an integral part of the LDF’s election manifesto.

Other state governments which have signed agreements with the Railways for the formation of Joint Venture Companies are Odisha, Gujarat, Chattsgarh and Haryana. (IPA Service)