The state government's and Centre's joint initiative of setting up a company to take up rail projects will soon be set in motion as the state has finalised on the composition of its director board.
The chief secretary will be the chairman of the company , with the state also having three director board members from its side. Of this, two will be non-whole time directors while one will be a full time director. The finance and transport secretaries will be the two directors while the full time director will be nominated soon.
In the same way the railways will also nominate three directors from its side. A company secretary will also be appointed by the state soon. The managing director will be a person who will be jointly decided by the state and the railways. Sources said that the composition of director board has been prepared and has been forwarded to the chief secretary and the transport minister for final approval. Meanwhile, the state has also asked the railways to nominate its representatives to the company . Once the director board is ready , the state government will transfer Rs 51crore in the company while the railways will contribute Rs 49 crore, to begin with.
The state government entered into an agreement with the ministry of railways for the formation of joint venture company for development of railway infrastructure in the state, in New Delhi on September 1. The company will primarily identify projects and possible financing avenues. The JV will form special purpose vehicles (SPVs) for each project. These SPVs can also have other stake holders from industries, central PSUs, state PSUs etc while it is mandatory for the JV Company to hold minimum 26% shares in the SPV concerned.
(Times of India dt 18-9-2016)
The chief secretary will be the chairman of the company , with the state also having three director board members from its side. Of this, two will be non-whole time directors while one will be a full time director. The finance and transport secretaries will be the two directors while the full time director will be nominated soon.
In the same way the railways will also nominate three directors from its side. A company secretary will also be appointed by the state soon. The managing director will be a person who will be jointly decided by the state and the railways. Sources said that the composition of director board has been prepared and has been forwarded to the chief secretary and the transport minister for final approval. Meanwhile, the state has also asked the railways to nominate its representatives to the company . Once the director board is ready , the state government will transfer Rs 51crore in the company while the railways will contribute Rs 49 crore, to begin with.
The state government entered into an agreement with the ministry of railways for the formation of joint venture company for development of railway infrastructure in the state, in New Delhi on September 1. The company will primarily identify projects and possible financing avenues. The JV will form special purpose vehicles (SPVs) for each project. These SPVs can also have other stake holders from industries, central PSUs, state PSUs etc while it is mandatory for the JV Company to hold minimum 26% shares in the SPV concerned.
(Times of India dt 18-9-2016)
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