Rail Budget 2014: PPP, FDI to speed up railways

New Delhi: Faced with financial constraints, railways has finally opened up for private investment to modernise its stations and optimize the use of freight traffic. Besides committing to FDI in railways, the thrust of the Rail Budget turned out to be public-private-partnership (PPP).

Union railways minister Sadanand Gowda, announced that the zonal railways would be empowered to finalise and execute projects to be taken under PPP mode on BOT (Build-Operate-Transfer) mode.

Explaining the rationale for opening up to private investment, the minister said that Rs 9 lakh crores would be needed for completion of Diamond Quadrilateral project, while the Ahmedabad-Mumbai bullet train would alone need Rs 60,000 crore. “Barring railway operations, the private investment will be explored in all areas, including station development, laying of rail tracks, logistics among others,” said Mr Gowda.

The minister said that the railways would facilitate connectivity to new and upcoming ports through private participation. “In principle approval has been given for building rail connectivity to the few ports, which will cost Rs 4,000 crores,” said Mr Gowda.