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The Cabinet on Wednesday gave its approval for the formation of a special purpose vehicle (SPV) to provide efficient railway evacuation systems to major ports.
The SPV, with in an initial paid-up capital of Rs 100 crore, will be funded by the 12 major ports and the Rail Vikas Nigam (RVNL). Major ports would contribute 90 per cent of the equity and RVNL the rest.
The authorised capital of the SPV will be Rs 500 crore. It would be manned by professionals with expertise on rail transport and port logistics.
The company will undertake last-mile connectivity to major ports, modernise evacuation infrastructure in ports and operate and manage the internal port railway system among other things.
Sagarmala
The Sagarmala project, which seeks to develop a string of ports around India’s coast, received an ‘in-principle’ approval from the Cabinet on Wednesday. Fund requirement for starting the implementation of various projects within Sagarmala Project is pegged at Rs 692 crore for 2015-16. Further requirement of funds will be finalised after completion of Detailed Master Plan for Coastal Economic Zones for future years.
The previous National Democratic Alliance government under Atal Bihari Vajpayee (1998-2004) had initiated the ambitious project. The current NDA government under Narendra Modi has revived it.
