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The proposed rail regulator's umbrella would encompass PPP ventures

Posted By Pravesh kumar

Post Date: 15/12/2015

Category: Maintenance & Modernisation,   Type: News

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Rail Minister, Suresh Prabhu, proposed to conduct Public Private Partnership (PPP) ventures under the scope of the proposed regulator for the Railways. The idea is to rejuvenate Indian Railways’ futile experience with PPP projects as part of larger reforms to boost investments through private participation.

Prabhu resolved that the regulator would not stipulate tariffs but render the framework for tariff structure with a viewpoint of improving the competence and give final approval. The regulator is being initialized to tackle the concern of cross-subsidisation. The draft is ready and we will get it passed in Parliament soon

The proposal is being agreed upon at a time when the Railways is striving to reduce costs in the view of surging freight volumes and the impact of the seventh pay commission recommendations.

Indian Railways has initiated 20 projects costing Rs 14,000 Crore in the current Plan period including new lines, doubling and electrification projects on the PPP model. While seven PPP endeavors of Rs 5,693 Crore are under the chisel as part of a Joint Venture model, an additional projects worth Rs 2,236 Crore are being accomplished via the customer-funded model. Three other PPP projects worth Rs 3,016 Crore are being realized through the acquisition pathway and in-principle approval has been conferred upon additional six projects worth Rs 3,078 crore. These models are part of the participatory policy for rail connectivity launched in 2012.

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