Railways new policy to attract private players

Posted By: Religare
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Railways new policy to attract private players
The cash-strapped Indian Railways has come up with a brand new draft policy whose main aim is to increase private participation and open up the doors for the foreign direct investment in the sector.

The new draft proposes a new PPP model for project execution which plans to create new and improved railway connectivity on private land and form a special purpose vehicles (SPV) for new line and gauge conversion.

The plan has also asked various state governments in India to play an active function in the development of infrastructure in their regions and help in implementation of new railway projects to ensure timely availability of rail infrastructure to the beneficiaries such as port, industry and states.

If finalized, the new PPP model will replace the existing R3i and R2Ci policies which have failed to deliver the desired outcomes.

According to the reports, both local and corporate bodies, large import and export companies, co-operative societies, infrastructure and logistics providers and even foreign direct investors can be invited to increase the rail networks in India.

Dion Global Solutions Ltd

Read more about: fdi, investment, government
Story first published: Monday, January 9, 2012, 23:38 [IST]
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