Railways have an important responsibility to provide linkages to the upcoming centers of growth and in Rail Budget 2016, importance was given on Creation of Joint Ventures with State Governments for undertaking rail based projects. Considering the fact the state government has given the green signal in forming a new company, named 'Gujarat Rail Infrastructure Development Ltd (G-RIDE)' to develop rail infrastructure in the state. The state government's stake will be 51% while that of Indian Railways will be 49%. This company will work on projects to improve connectivity and correct missing links in the state.
The state government will take care that it gets project permission from the authorities and also performs land acquisition. The JV Company will co-ordinate with the Railway ministry through an SPV and implement works for the concerned zonal railways and Railway PSU projects. It has been decided that the contract of the specific SPV could be for 30 years under Railways, and land would be under the ownership of the project SPV. The proposed joint venture's initially paid up capital will be Rs. 100 crore, which is based on the cost of projects to be undertaken. Authorized share capital and paid up share capital of this JV firm, can be hiked from time to time.