Railways pitches for over Rs 8 lakh crore investment

New Delhi: Aiming at a massive investment of more than Rs 8 lakh crore over the next five years, Railways has firmed up various models to attract private participation for capacity augmentation of the state-run transporter.

According to Railways estimate, an investment of Rs 8,56,020 crore (approximately 135 billion US dollars) over five years will augment infrastructure capacity and modernisation.

A participative policy for rail connectivity and capacity augmentation has been in place with five models for building rail connectivity, a senior Railway Ministry official said.

He said Non-Government Railway (NGR), Joint Venture (JV), Build Operate and Transfer (BOT), capacity augmentation with funding provided by customers and capacity augmentation through annuity are five models to attract private investment.

The private companies which have been permitted to build rail connectivity under the participative policy are JSW Jaigarh Port Limited for Jaigarh port rail connectivity, Rewas Port Limited for Rewas port rail connectivity, Balaji Infra Development Private Limited for Lalitpur-Udaipura (electrification) and Dhamra Port Limited for Dhamra port rail connectivity.

Navayuga Engineering Company Limited for Astrangra port rail connectivity, Nargol Rail Link Limited for Nargol port rail connectivity, Simar Port Limited for Chhara port rail connectivity, Hazira Port Infra Limited for Hazira port rail connectivity and Dighi Port Limited for Dighi port rail connectivity are other firms working under Railways' participative policy. 

Government has also permitted 100 percent Foreign Direct Investment (FDI) in construction, operation and maintenance of suburban corridors through public private partnership (PPP) for high speed train projects and dedicated freight lines.

FDI is also allowed in rolling stock including train sets and locomotive/coaches manufacturing and maintenance facilities, railway electrification, signaling system, freight terminal, passenger terminal, infrastructure in industrial park pertaining to Railway line/siding and Mass Rapid Transport System.

Railways have issued sectoral guidelines for Domestic/ Foreign Direct Investment (FDI) in the sector.

Besides, public sector undertakings of the Railways and the government have also been permitted to take up rail connectivity projects.

Electric and Diesel Locomotive factories at Madhepura and Marhowra entailing FDI have been awarded to Alstom and GE respectively.