He told reporters here Monday that the SPVs will be formed with equity participation from the Railways and the state governments concerned.

"Some state or other always complains justice is not done to them in sanctioning railway projects. We have decided to have SPVs with each state to meet its specific requirements," he said.

The Minister said each state will decide the priorities and send it to the Railways, which will execute projects under the SPV.

"What surplus is generated will remain with the state for expansion of rail network and other works," he said.

Prabhu, who flagged off two new trains at Secunderabad Railway Station, said during a meeting with Andhra Pradesh Chief Minister N Chandrababu Naidu three days ago they decided to form the SPV.

He said he would propose the same to Telangana Chief Minister K Chandrasekhar Rao during a meeting with him here later in the day.

Stating that demands for new trains, new railway lines and other railway projects continue to come from the states, the minister said bringing investments to meet the requirements was a challenge for the Railways.

Asked whether his statement that Railways is in bad financial position means an imminent hike in fares, Prabhu remarked, "Burden of Railways is burden of common man as the Railways belongs to common man."

"We have to make sure how railways are run properly, giving more benefits and more amenities to common man," he added.

Latest News from India News Desk