Railways work on Rs 3 lakh cr plan

The Railways are working on an ambitious plan for development and modernisation at a cost of Rs 3,00,000 crore in the next five years.

Railway Minister Lalu Prasad Yadav today said 40 per cent of this amount was expected to be generated through public-private partnerships (PPPs).

The Rs 20,000-crore capital surplus, expected by the end of the current fiscal, has given the Railways the confidence to go ahead with the plan.

Addressing a conference on PPPs in infrastructure, organised by the World Bank, Yadav said he was not against PPPs, but ruled out indiscriminate privatisation.

The minister said core activities like running of trains should remain with the Railways while private players were welcome to take up non-core activities.

In this, he found an ally in Finance Minister P Chidambaram. "I endorse the railway minister's view that core activities in crucial infrastructure area like the Railways should remain with the public sector," he said, suggesting that private sector could be roped in for allied activities.

Private players are expected to be involved in running container trains, construction of dedicated freight corridor, modernisation of railway stations and establishment of logistic parks and agri-warehouses.

Referring to the Rs 30,000-crore eastern and western dedicated freight corridor linking Delhi-Mumbai and Delhi -Kolkata, Yadav said his ministry favoured PPPs in the construction of multi-modal logistics, while running of trains would remain with the Railways.

The minister also announced the setting up of a PPP cell, headed by Railway Board chairman JP Batra, with the objective of attracting investment.

The PPP cell would prepare a policy for such projects, and rules for awarding the projects. The minister called for both Indian and foreign organisations to invest in infrastructure development of the Railways.

Asserting that the Railways' turnaround was the result of a well thought out strategy and team work, he said the Railways was working on the principle of "optimum utilisation of assets", and trying to earn at least Rs 10 on an investment of Re 1.

"Through this strategy, we have converted sidings and terminal points to a full rake, provided 24-hours loading and unloading facility, and earned Rs 5,000 crore as against the investment of Rs 400 crore only," Yadav said.