Web Exclusive | July 2014
PPP finance for future rail projects: Rail Min
Our Mumbai Bureau
While presenting the first Railway Budget for the current fiscal, Sadananda Gowda, Union Minister for Railways, has said that his ministry will take up future projects on public-private partnership basis. “Bulk of future projects to be financed via PPP route,” he said while presenting his maiden rail Budget, today.
He also said that the rail ministry will privatise and set timelines for ongoing projects giving the much-needed push to rail infrastructure, which is still in limbo. “Foot-over bridges and escalator facilities at major stations will be undertaken via PPP,” he said.
In the Budget, the minister announced a few high value projects that include high-speed trains on 9 routes; diamond quadrilateral network for high-speed trains and a bullet train on the Mumbai-Ahmadabad route.
Meanwhile, the minister lambasted the UPA government saying that the previous Government only focused on sanctioning projects, rather than completing them. The minister cited an example of four projects which are waiting for 30 years to see any progress.
In terms of expenditure, the ministry has set aside Rs 1.49 lakh crore. While explaining the expenditure, the minister also raised serious concerns over huge requirement of funds. “To transform the rail ministry we require Rs 50,000 crore every year for next 10 years,” he told Lok Sabha members.
Highlights of Railway Budget 2014-15:
To undertake 10 surveys for doubling, tripling rail lines
To undertake 18 surveys for new rail lines in FY 15
Mumbai to get 864 additional state-of-the-art EMUs in 2 years
Plan to introduce high-speed trains on 9 routes
To introduce single window clearance for speedy clearances for new rail tracks
To have diamond quadrilateral network for high-speed train
Rail Ministry to set up university
First bullet train will be launched in Mumbai-Ahmadabad route
Infra Push: To privatise and set timeline for ongoing projects
Rail Min to encourage wagon leasing market
Foot over-bridges, escalators at major stations via PPP
FY15 expenditure pegged at Rs 1.49 lakh crore
Impetus to private sector: Bulk of future projects to be financed via PPP route
Four projects are 30 years old which are yet incomplete
Focus so far has been on sanctioning projects rather than completing them
Require Rs 50,000 cr every year for 10 years
Indian Railways hauls 1 billion tonnes of freight annually, but only 33 per cent of all freight carried on all modes
Rail Minister proposes FY15 market borrowing at Rs 11,790 crore