Private investment in Rail Infrastructure through Domestic and Foreign Direct Investment

Resource Mobilisation for Railways

The Minister of Railways Shri D. V. Sadananda Gowda, while presenting the Railway Budget for 2014-15 outlined the Resource Mobilization for Railways as under :-

Leveraging Railway PSU Resources:- Railway PSUs have done very well and are financially sound. It is proposed to launch a scheme to bring in investible surplus funds of Railway PSUs in infrastructure projects of Railways, which can generate attractive returns for PSUs.

Private investment in Rail Infrastructure through Domestic and Foreign Direct Investment (FDI); -Growth of Railway Sector depends heavily on availability of funds for investment in rail infrastructure. Internal revenue sources and government funding are insufficient to meet the requirement. Hence, Ministry of Railways is seeking Cabinet approval to allow FDI in Rail Sector.

Public Private Partnership:-There has been a lot of talk about public private partnership for raising resources. Railways being a capital intensive sector have not been successful so far in raising substantial resource through PPP route. Bulk of our future projects will be financed through PPP mode, including the high-speed rail which requires huge investments. Apart from mobilizing resources, there is also a need to strategically manage other aspects of railway planning and administration.

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