The government of Tamil Nadu in India has expressed its willingness to sign a memorandum of understanding with Indian railways to begin a number of new PPPs in the area.
Chief Minister O. Panneerselvam has been in contact with Railways Minister Suresh Prabhakar and has discussed creating special purpose vehicles (SPVs) so that funds could be raised for the development of the rail network.
The Chief Minister pointed out that the state government has decided to take up three railway projects, Chennai-Tutitcorin freight corridor, Chennai-Madurai-Kanyakumari high speed passenger link and the Coimbatore-Madurai high speed passenger link. The Vision Railways 2023 document proposes executing the projects in PPP mode through an SPV.
In July last year, the country’s newly installed rail minister revealed plans for major new investment in the network through PPP.