Cabinet clears creation of SVP for Rly's Dedicated Freight Corrido
New Delhi, Aug 24 (UNI) The Union Cabinet today gave its approval for setting up of a Special Purpose Vehicle (SPV) for execution of the Railway's ambitious Dedicated Freight Corridor Projects as per the recommendations of the Group of Ministers.
Briefing mediapersons after a Cabinet meeting here, Minister for Parliamentary Affairs Priyaranjan Dasmunsi said creation of the SPV will help in time bound execution of the project through focused attention to planning, financing, construction and maintenance.
The SPV shall perform similar functions in respect of future phases of the Dedicated Corridors, if any, including those connecting other legs of the Golden Quadrilateral and its diagonals.
It will have the status of a Railway Administration under the Railways Act, 1989 and shall exercise powers and discharge responsibility for the functions assigned to it under the concession agreement.
An Empowered Committee under the Chairmanship of Cabinet Secretary would be consituted to monitor the time-bound implementation of the project and resolve the inter-ministerial and state-level issues that could potentially impede the progress of the project.
The Committe will consist of Chairman Railway Board, Financial Commissioner Railway Board, Finance Secretary, Secretaries of Planning Commission, Ministries of Law and Environment and Forest and Departments of Road Transport of Highways and Shipping as also the MD of the SPV. It may also invite the Chief Secretaries of the states to the meetings if so required.
The Minister said the SVP will also help in reducing the transit time and cost of rail transport which would enable the Railways to garner a larger share of the freight with concomitant economic and environmental benefits for the nation.
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