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Railways invite private players to come on board

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Our Economy Bureau New Delhi
Last Updated : Feb 25 2013 | 11:50 PM IST
The private sector is set to play a greater role in the execution of railway projects. Railway Minister Lalu Prasad made it clear in his Budget on Friday that his ministry would encourage public-private partnership schemes for developing and expanding the railway network.
 
According to Prasad, rail-linked container depots and integrated logistic parks have to be created to make the new container policy a success and to increase the railways' share in non-bulk freight business. Prasad said the railways have enough land which could be used for setting up depots and logistic parks.
 
The assessment is that with this public-private partnership approach, the railways will be able to mobilise sizeable investments in container depots and wagons.
 
Prasad is optimistic that the private sector is equally keen to participate in such ventures. The railways will also lease out passenger retiring rooms, waiting halls, station buildings and bathrooms to private parties for operation and maintenance. Pantry cars and catering units are already leased out to private parties.
 
According to the minister, around Rs 250 crore has been raised for manufacture of 25 rakes under the Wagon Investment Scheme launched last year. Prasad says his ministry's decision to allow private parties to run container trains has been well received.
 
Fourteen applicants have deposited Rs 540 crore as registration fee. The eligible applicants will be permitted to run container trains before March 31.
 
The railways are determined not to allow resource constraint to hamper network expansion. "To this end, a level playing field under a transparent policy will be provided to investors by further simplifying the policy of public-private partnership," the minister has emphasised.
 
Apart from state governments, local bodies and ports, the railways has invited the private sector to invest in its projects. Rail projects will also be awarded through open bidding, says the minister.
 
It has also been decided to encourage viability gap funding for some unviable projects.

 
 

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First Published: Feb 27 2006 | 12:00 AM IST

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