)
Of the total Plan outlay of Rs 65,445 crore, PPPs are expected to bring in Rs 6,005 crore.
Railway Board Chairman Arunendra Kumar said during 2013-14, the Railways had raised Rs 2,500 crore through the PPP route, Rs 3,500 crore less than the target. Of the total PPP investment, Rs 937 crore was raised by Rail Land Development Authority, under its land monetisation programme.
Among the big-ticket plans the Railways wants to push through the PPP mode in 2014-15 are 20 power sector and port connectivity projects (for the ports of Jaigarh, Dighi, Rewas, Hazira, Tuna, Dholera and Astranga), amounting to about Rs 4,000 crore. "We will interact with industry and take further steps to attract investment under PPP through build-operate-transfer and annuity routes; eight-10 capacity-augmentation projects on congested routes will be identified for this purpose," the railway minister said in his speech. Zonal railways would be "suitably empowered" to finalise and execute such projects, he added.
The government will also leverage the resources of railway PSUs and channel their investible surplus funds to the Railways' infrastructure projects. FDI in the sector, except in rail operations, will also get a push.
A string of initiatives, including passenger amenities such as foot overbridges, escalators and lifts, boundary walls and extension of dual-display fare repeaters at all ticket counters will be executed through the PPP route. "We will take up the development of identified stations to international standards, with modern facilities and passenger amenities on the lines of newly developed airports, through the PPP model," Gowda said.
The budget has also proposed private participation to harness solar energy by utilising the rooftops of railway stations and other railway buildings. Similar initiatives will also be taken to modernise the Railways' logistics operations by setting up logistics parks that provide for warehousing, packaging, labelling, distribution, door-to-door delivery and consignment tracking.
Private investment will also be encouraged to fuel the growth of a network of freight terminals. The policy for private freight terminals, Gowda said, was being restructured further.
Industry expects private participation to help the Railways become a commercially viable organisation. "Currently, Indian Railways is making losses and it lacks funds and the required infrastructure. Having private sector participation and opening the gates to FDI will fill the gap and give the desired boost. The emphasis on prioritising crucial projects is another signal towards growth," said Nalin Jain, business leader (South Asia), GE Transportation.
The PHD Chamber of Commerce and Industry said the right way to rebuild the Railways would be through domestic and foreign capital, for which a Cabinet note must be prepared as soon as possible.
"The minister has admitted railways finances are in a mess due to populist measures by previous governments. All necessary approvals of the government should be taken so that funds and technologies are garnered to serve the intended purpose," said Sharad Jaipuria, president of the chamber.
| HAND IN HAND... | |
|
