Cabinet approves formation of SPV to major ports

The Union Cabinet chaired by the Prime Minister, Narendra Modi, gave its approval for formation of a Special Purpose Vehicle (SPV) to provide efficient rail evacuation systems to Major Ports and thereby enhance their handling capacity and efficiency. SPV would undertake projects like last mile connectivity to major ports, modernization of evacuation infrastructure in ports, operating and managing internal Port Railway system and raising financial resources for funding port related railway projects. Major Ports have identified a shelf of nearly 40 projects which includes the last mile connectivity, projects and internal Port Rail Projects which would require an estimated investment of Rs 2,372 crore. SPV would be funded by all the 12 Major Ports and the Rail Vikas Nigam Limited (RVNL). Major Ports would contribute 90 percent of the equity, with RVNL contributing the rest. The SPV would work in close co-ordination with the Indian Railways.