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----JRIDCL/Estt./MD/40/2019 , , 50:50 MoU
2. , (JVC) Jharkhand Rail Infrastructure Development Corporation Ltd. (JRIDCL) 51% 49% , Carrying out feasibility study, preparation of DPR, identification of stake holders etc
3. ॰-1035, -2 01.11.2019 , /, -- , ,
- {{^{{FOOTNOTE 06}}}}.{{^{{FOOTNOTE 2020}}}} -{{^{{FOOTNOTE 28}}}}.{{^{{FOOTNOTE 07}}}}.{{^{{FOOTNOTE 2020}}}} , / :- (i) Strategically important Rail projects should only be taken up under 50:50 Cost Sharing basis: Present system of financing of Railway projects in the state of Jharkhand is 50:50 cost sharing by Ministry of Railways and Government of Jharkhand. This system has become unsustainable in the present context. However, as Railway plays an important role in the development of the region, only such Railway Projects should be taken up under this modality which are required for socio-economic development to the State and only when financial condition of the State Government improves. Projects can be executed as per prevailing practice i.e. by Railways or through state JV (JRIDCL). (ii) Provision of Railhead Connectivity to District Headquarters of the State: There are many District Headquarters still not connected with Railway network like Gumla, Chatra, Simdega and Khunti etc. To provide Rail connectivity to these areas, a well planned Railway network which can attract stakeholders should be explored. In such cases, Rail connectivity to remote areas of the State with minimum contribution of the State Government can be achieved. JRIDCL may be assigned such exploration. (iii) Economic viable Railway Projects should be taken up under Debt-Equity Model : The Railway Projects required for consumers i.e. for goods movement etc. may be explored with the aspect of permitting passenger trains on the route. All such projects and also Rail projects which are Financially viable can be taken up under Debt-Equity concept of JV model of participative policy of Ministry of Railways. In this model, the Debt-Equity ratio is fixed on the basis of Rate of Return. Finances are arranged from external sources i.e. Private/Government Stakeholders and/or Loans from Consortium of Banks or Debt Serving Organizations. In any proposed SPV, having Debt-Equity ratio of 70:30, JV (i.e. JRIDCL- A JV between Government of Jharkhand and Ministry of Railways with equity participation ratio of 51:49) will have minimum 26% equity. In this model, only 8% approx of the project cost will have to be borne by the JV. This means, the State Government will have to bear only 4% (Approx.) of the project cost. It may be further low in case of Debt-Equity ratio of 80:20 for projects having better financial returns. However, the Government is set to get revenue in terms of GST and other statutory taxes on the cost of the project. In addition, passenger lines without Govt. investment may be explored, by encouraging participation/Investment from Industrial/Mining Corporate. ↩
(iv) Important Railway Projects should be taken up under VGF/Grant model : Important Railway projects, which are financially not viable, but required for critical connectivity, capacity enhancement and/or Socio-Economic development of the State may be taken up under JV model.
The projects can be taken up by JV itself and/or additional fund, if so required, be arranged through Viability Gap Funding/Government Grants/other sources.
(v) JRIDCL to have an Anchor role for Railway Projects of the State : The State JV-JRIDCL (JV between Government of Jharkhand and Ministry of Railways with equity participation ratio of 51:49) to serve as anchor role to State Government in identification, planning & development of Railway projects in the state. The mode of financing may be Debt-equity, 100% Equity or Government Funded/VGF/other sources etc. depending on the Economic viability/Strategic requirement of the project.
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