Experts urge railways to attract more pvt investment

Experts suggest Indian Railways to attract more private players in order to attain the targeted investment in the sector during the 12th five year plan (2012-17). Consulting firm PwC India, Srei Infrastructure Finance advocated involvement of private sector to meet the funding gap in the sector. During the plan period, the railways aims to generate Rs 1 lakh crore investment through public-private partnerships (PPPs) model. This would be 19.25 per cent of the total investment target for the Plan. The railways, whose performance in PPP projects has been dismal, will need to generate private investments over and above internal funds, borrowings and budgetary support to meet the investment requirements of the Plan. During 2013-14, Railway Minister Pawan Kumar Bansal hopes to raise Rs 6,000 core through the PPP route to fund the Rs 63,363-crore Plan next year. The railways intends to attract private investment for the elevated rail corridor in Mumbai, parts of the Dedicated Freight Corridor, redevelopment of stations, power generation and energy saving projects, and freight terminals. According to the Plan document, the railways has a large shelf of ongoing projects, whose completion would require about Rs 225,000 crore. The private sector is expected to invest in traffic facilities, electrical works and workshops, plus passenger amenities, among others.