Tribune News Service
New Delhi, July 5
The Narendra Modi government today made the much anticipated move and proposed to allow public-private partnership (PPP) model for faster development and completion of tracks, rail coaches and delivery of passenger freight services.
The move comes as the railway infrastructure would need an investment of Rs 50 lakh crore between 2018-2030. "Given that the capital expenditure outlays of the Railways are around 1.5 to 1.6 lakh crore per annum, completing even all sanctioned projects would take decades," Nirmala Sitharaman said in her Budget speech and proposed how the new PPP model would invite private parties.
The Railways would invest more in suburban railways through special purpose vehicle (SPV) like rapid regional transport system (RRTS) proposed on the Delhi-Meerut route. The ministry will enhance metro railway initiatives by encouraging more PPP initiatives.
The ministry will work on transit-oriented development (TOD) to ensure commercial activity around transit hubs. "We are in the process of completing the dedicated freight corridor project that will free up some of the existing railway network for passengers. The dedicated freight corridors will mitigate the congestion of our railway network benefiting the common man," Sitharaman said.
The Railways will also launch a modernisation programme this year to make travel a pleasant and satisfying experience.
‘Not selling off assets, all jobs safe’
- Railway Minister Piyush Goyal asserted that the national transporter has no plans to sell government assets and people will not lose jobs due to corporatisation, allaying fears among its production unit workers that the factories will be given to private parties
- The minister rather showed confidence in the railways manufacturing units, which have produced state-of-the-art coaches like in Train 18 and are in the process of making Train 20, by indicating that the railways will invest in creating metro coaches and stock
- “We are not selling off government assets. Everybody's jobs will be protected. Like we have IRCON, RITES — they are all corporatised government companies,” he said
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