The Government of India has approved the proposal of the Indian Railways to set up an institution -- referred to as a Special Purpose Vehicle -- at an investment of Rs 8000 crore for carrying out projects aimed at strengthening the rail links between Delhi, Mumbai, Kolkata and Chennai.
"The Cabinet has approved setting up of this vehicle with 100 per cent equity participation from the railway ministry," Information and Broadcasting Minister Sushma Swaraj said.
The SPV will be registered as a company under the Companies Act with an initial authorised share capital of Rs 1000 crore, she added. Additional money would be raised by multilateral, bilateral, export funds and funds from the domestic market.
The high-density rail network connecting the four metros carries 65 per cent of freight traffic and 55 per cent of the passenger traffic of the railways, Swaraj said.
The projects envisaged include doubling the remaining single line patches, laying of multiple lines, wherever required, setting up of terminal and junction stations, reduction in speed differential by raising the speed of freight trains to 100 km per hour and improved rolling stock.
Grade separation at level crossings, construction of freight bye-pass at busy junctions and speeding up of slow stopping passenger trains are the other projects envisaged.
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