Indian Railway: Funding for railway infra can be arranged with the help of private sector investment.
Trying to make the PPP model more attractive.
The government has also announced a big budget for development in the infra sector in this budget. However, the biggest challenge before the government is to manage the fund. Meanwhile, the rating agency ICRA has suggested that the government can help the private sector for development in railway infra. ICRA’s Group Head and Senior Vice President Shubham Jain said that funding for railway infra can be arranged by setting up joint ventures with state governments, with the help of multilateral financing institutions and private sector investment.
Railways is also considering other options for its funding. In this, options such as public private partnership, operation and maintenance, monetization of operating agents are under consideration. For the beautification and development of stations, the Railways is adopting the Public Private Partnership model very fast. Currently Indian Railways operates around 8000 railway stations. The ownership of these stations is also with the railways. For the beautification and development of railway stations, so far it has moved ahead on only one project under the PPP model. After that the program has been stopped for the time being.
Thoughts on making PPP model more attractive
However, the railways have made the terms and conditions a little easier to make the PPP model more attractive. Railways believe that it will be easy to woo private investors with changed terms and simple terms. Apart from this, Railways is working on the National Rail Plan for the long term plan. This will meet the needs of capital expenditure for railways in the long run. In the capital expenditure program, the emphasis will be on increasing the freight train service and increasing its share.
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(IANS input)
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