Indian Railways Closes RLDA-RITES-IRCON JV, Full Details Here
This is the second organization under the Ministry of Railways to be shut down after the closure of the Indian Railway Organization for Alternative Fuel (IROAF) on September 7, 2021.
Image credit: PTI
New Delhi: A joint venture between Rail Station Development Corporation (IRSDC), Rail Land Development Authority (RLDA), Rail India Technical and Economic Service (RITES), and Indian Railways Nirman (IRCON) is being closed.
This is the second organization under the Ministry of Railways to be shut down after the closure of the Indian Railway Organization for Alternative Fuel (IROAF) on September 7, 2021. The Board, in a letter sent on Monday to all the General Managers, has ordered that all necessary procedural formalities should be initiated for the closure of IRSDC.
The letter further said, "The stations managed by IRSDC will be handed over to the concerned Zonal Railways, and documents related to all the projects will be handed over by IRSDC to the concerned Zonal Railways. The Zonal Railway will further develop the projects of the stations.
This is in line with the recommendation of the Cabinet Secretariat to integrate and introduce structural reforms in various bodies under the Ministry of Railways. It had also suggested the merger of various railway institutions.
The move is a move to accept the recommendation of the Finance Ministry, which in a report recommended rationalization of government bodies by closing them down or merging several organizations under different ministries.
RLDA holds 50 percent, IRCON 26 percent, and RITES 24 percent. IRSDC was initially a joint venture between IRCON and RLDA. IRCON sold a part of its stake in 2020 to RITES for Rs 48 crore. IRSDC was entrusted with the responsibility of monitoring and implementing station modernization projects.
Indian Railway Station Development Corporation (IRSDC) was set up to redevelop stations across the country. Among several other rail projects, the Indian Railway Station Development Corporation, which was set up in March 2012, was involved in the bidding process for the redevelopment of Chhatrapati Shivaji Terminus (CSMT) station in the city of Mumbai.
Recently, bids were invited by IRSDC for setting up of "Rail Arcade" at Chandigarh as well as KSR Bengaluru railway stations.
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