PRCL has been formed as a Joint Venture Company with equity participation
of Ministry of Railways, Government of India and Gujarat Pipavav Port Limited to undertake the construction, operation & maintenance
of the 271 km long Broad Gauge Rail line between Surendranagar and Pipavav port. The cost of the Project is approx. Rs.373 crores.
The Ministry of Railways have conferred concessional rights to PRCL, for constructing the broad gauge rail
line and thereafter operating & maintaining the said line for a period of 33 years', through a Concession Agreement of 28 June 2001. By virtue of this Concession Agreement, PRCL is a Railway
Administration as per the Railways Act, 1989.
Under a Construction Agreement between
Western Railway and PRCL, signed on 13th March 2002, Western Railway constructed and commissioned the broad gauge rail line, including the gauge conversion from meter gauge to broad gauge between
Surendranagar and Rajula (approximately 250kms) and a new broad gauge rail line between Rajula and Pipavav port (approximately 21 kms).
PRCL shall carry out the operations and maintenance of the rail line
through Western Railway, as their nominated operator