Inviting private sector for the development of railway infrastructure, the Indian Railways today said the ambitious target of laying 1000 km of track per year would be financed through its internal resources.
Briefing reporters at the post-Rail Budget press conference, Railway Board Chairman S S Khurana said private participation was welcomed in laying of new lines for iron ore, coal projects.
"We can build business model" for such ventures, he said, adding the railway attracted a total of Rs 4,462 crore through private participation last year.
He was replying to a question on how Railway propose to meet the target of 1000 km when it is only able to lay 180 to 200 km of railway track annually.
Exuding confidence about laying 1000 km per year, he said it would be possible as "the Railway act relating to land acquisition has been empowered in 2008 and has come to us... as acquiring land delayed the project work for us."
"There has been substantial increase in outlay from Rs 2,848 crore to Rs 4,411 crore for laying of the 1000 km track," he said.
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Khurana said the Railways would also identify investments through PPP model for the high speed passenger corridor project and would not seek budgetary support for the purpose.
Khurana said Maharashtra, Karnataka and Andhra Pradesh have shown keen interest in sharing the cost for extension of rail infrastructure.
Asked whether the catering service would be taken over by the Railway Board which is at present being handled by IRCTC, Railway Board Member (Traffic) Vivek Sahai said: "A new catering policy would be unveiled soon."
When asked how funds would be raised by the Railways for the proposed Kendriya Vidyalayas and modern degree colleges, Khurana said the Railways was collaborating in these projects along with Human Resource Development and Health Ministries.
"It is not Railways investment totally," he said, adding the Railways were also bound to take care of its employees welfare.
Asked about the impact on railway revenues with the reduction of freight rates of foodgrains and fertilisers by Rs 100 per wagon, he said: "The freight traffic was growing at the rate of seven per cent per annum. So, it was considered not necessary to increase...It could be a few crores."