Rebate likely for gauge conversion

A railway committee has recommended concessions in payment of dividend to ongoing and future gauge conversion works, pointing out that such rebate was available to new lines on strategic considerations.

"The committee after taking into account the views of ministries of defence, finance and railways are of the considered view that since concessions are already provided to strategic lines, on the same analogy the concessions could be provided for gauge conversion of strategic lines also," railway convention committee Chairman Ginzee N Ramachandran said.

The third report of the convention committee on "extension of concessions available on construction of new lines on strategic consideration to gauge conversion works taken up on strategic considerations" was presented to the two Houses of Parliament on Friday.

The committee further opined that fresh vetting of the projects by the ministry of defence need not be required as the projects are taken on the request/recommendation of the ministry of defence only, he said.

The committee also felt that the issue of national security was of paramount importance and thus due priority should be given for completion of the projects taken up on strategic consideration, Ramachandra said.