Apart from obtaining higher budgetary support from the General Exchequer, Railways are mobilizing Extra- Budgetary Resources like institutional finance sourced by Indian Railway Finance Corporation (IRFC) from Life Insurance Corporation of India, investment by strategic / private investors under Public – Private Partnership policy, equity participation by State Governments and Public Sector entities in joint ventures with Railways and funding from multilateral lending agencies like the World Bank.
Due to a large shelf of ongoing projects with limited overall availability of funds, there had been delay in completion of projects. Clearances from different land owning agencies, lengthy process of acquisition of land and shifting of services/ utilities also take some time.
Ministry of Railways has been authorized to form Joint Venture companies to undertake project development, resource mobilization and monitoring of mutually identified rail infrastructure projects on cost sharing basis. The Joint Venture company can form project specific subsidiaries or Special Purpose Vehicles (Project SPVs) which may have equity participation by other stakeholders like Banks, Public Sector Undertakings, Ports, Mining Companies etc. for project implementation.
Railways have entered into Memorandum of Understanding / Joint Venture Agreement with State Governments of Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Odisha and Telangana.