The Karnataka government is all set to enter into a shareholder's agreement with the Centre for channelising funds into specific railway projects depending on the needs of the state.
Details of share percentages between the state government, the Centre and Infrastructure Development Corporation of Karnataka are being finalised. The Rail Infrastructure Development Corporation of Karnataka (K-RIDE) will henceforth be a developing and implementing agency. The total corpus is expected to be around Rs 20 crore.
An SPV will be set up to undertake each railway project wherein private parties would be roped in. But if the proposed railway line is not lucrative due to lower freight realisation, the Railways will execute the project. Four railway projects in the state have already been identified with the Karnataka government's share in equity amounting to Rs 15 crore. The half-done Hassan-Mangalore gauge conversion will be the first project for which an SPV is expected to be set up by September. l
[See Nov. 1-15, 2001, issue]