In an effort to increase private participation in upcoming projects, Railways will very soon introduce a mechanism to create a level playing field for all participants.
Admitting that current policies could not achieve the desired objectives in many proposed PPP projects, Railway Board Chairman Vinay Mittal said, “What we need to do see is that the private entrepreneurs must also get a level-playing role. We are working on this without compromising the interest of the railways. It has to become attractive enough for him (investor) to make an investment.”
As the pressure on internal resources generation continues, Railways has been drafting a policy to seek increased private participation in the rail projects.
In response to a query whether this would come out by coming February, Mittal said, “We are already in the process of finalisng it. It should go sooner I think.”
Meanwhile, Railway has received cabinet approval for last mile connectivity, which Mittal said, "will give a huge impetus to the freight traffic."
Last mile connectivity is what connects nearest rail lines to the manufacturing units or mines etc.
The railway board had to get cabinet approval for that because of the land acquisition issues.
"That issue has been resolved and instructions have been issued to all zonal railways that they can now have the last mile connectivity. The traffic which was held up for the last mile connectivity project has come back on track," he noted.
The cash-strapped railway also wants an increase in gross budgetary support for the Railways under the 12th Plan.
“We have made an urgent plea to the government of India. We will be happy with anything which is much more than Rs 20,000 crore which we got in the current fiscal. We have 149 projects in the pipeline and progress depends on the quantum of budgetary support we receive” Mittal said.
Replying to a query on possibility of hike in passenger fare or freight rakes, he said, “It is a challenge to make good revenue. As of now there has been no talk of hike. We do not have any information about any hike.”
However, he said, Pitroda committee report for restructuring and revenue generation avenues for the railways were still awaited.
