26.11.12

Of Private Sector Investments in Railways....


Desperate to attract private investment in the cash-strapped railways, the Union cabinet has cleared the state-run transporter’s plan to rope in the private sector to build new railway lines and plants, and
augment capacity, a move that was quickly red-flagged by unions.
With the policy in place, the railways will be able to get the private sector to connect ports, mines and industrial plants with the rail network by allowing them to invest in laying the tracks for last-mile connectivity. The move is expected to lower transportation costs and help move minerals, coal and finished products from the production centres.
Similarly, wherever the private sector thinks that putting up a third or a fourth line is feasible, the government can enter into a build-operate-transfer (BOT) arrangement. According to sources, some of these railway lines can be taken up under competitive bidding through an annuity model for concession periods raging between 15 and 20 years.

No comments: