Railways Minister Suresh Prabhu made the announcement after paying homage to martyrs Bhagat Singh, Rajguru and Sukhdev here.
Prabhu said the new venture will transform Indian Railways and make it a "truly modern" entity.
The Railways minister said the initiative would result in connecting missing rail links in the state, besides modernising important stations. Amritsar will be the first station to be modernised under this partnership.
On the occasion, Deputy Chief Minister Sukhbir Singh Badal said the new Amritsar railway station will have a shopping mall, besides modern office spaces.
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Meanwhile, speaking at a public rally, Prabhu announced that the railway station of Khatkar Kalan will be upgraded and the train services would be started between Jaijon Doaba and Amritsar via Nawan Shahr and Khatkar Kalan.
Prabhu also assured survey of new railway track between Rahon and Samrala to connect Khatkar Kalan with rest of country on a demand put forth by local MP Prem Singh Chandumajra.
In his address, the Punjab Deputy Chief Minister recalled the contribution of Punjabis especially Sikhs in the freedom movement.
Badal said he had got an opportunity to visit Andaman Island, where he read in a commemoration plaque that 80 per cent of those who gave their lives for freedom struggle were Punjabis.