Home ECONOMY Odisha SPV for rail projects to be named ORIDC

Odisha SPV for rail projects to be named ORIDC


Odisha Sun Times Bureau
Bhubaneswar, Jan 17:

The proposed special purpose vehicle (SPV) for expansion of the railway network and construction of proposed and ongoing railway projects in Odisha will be named Odisha Rail Infrastructure Development Company (ORIDC), official sources said here today.

railway line

The Odisha government., it may be noted, had accepted the proposal of Union Railway minister Suresh Prabhu for formation of  the SPV to expedite railway projects in the state.

The Odisha government, the Railway ministry, some banks and the company would be the stakeholders of the company which would be registered under the Companies Act, 2013.

ORIDC, with its head office in Bhubaneswar, will act under the administrative control of the Railway ministry, the sources said.

It will have two directors each from the Railway ministry and the Odisha government while the general manager of East Coast Railway (ECoR) would be its part-time chairman.

The managing director of the company would be an official either from the Railway ministry or the state government having experience in the implementation of railway infrastructure projects.

The authorised capital of the company will be Rs 500 crore while the initial paid-up capital would be Rs 50 crore.

Besides, the company would also make efforts to seek financial assistance from the companies who are its stakeholders.

To expedite project work taken up by the company, there will be a steering group led by the state chief secretary as chairman and the ECoR general manager as joint chairman.

Besides, the group will also have representatives of various departments of the state government and the ministries of Railway, Forest and Environment ministry and Surface Transport of the Union government.

The steering group will have a meeting every two months to discuss the issues related to the projects underatken.

While the Railway ministry has already given a green signal for formation of the SPV, the signing of MoU between the ministry and the state government will take place very soon, official sources said.