Fiscal viability no longer sole criterion for rail projects
RAILWAYS & METRO RAIL

Fiscal viability no longer sole criterion for rail projects

Since enlarging rail connectivity to far-flung, backward and hilly areas may not be financially viable, the government has decided to give weightage to “intangible benefits” like social, environmental and network effects of such projects.

The policy change will help the government to justify connectivity projects of new lines, gauge conversion, doubling of lines, etc, even if they do not generate financial returns. The Railways will now not have to struggle to obtain financial sanction for these projects.

The Ministry of Railways has sent a set of four new project proposals for appraisal to the Niti Aayog, justifying their investment based on this new ‘Modified Economic Internal Rate of Return’ model. These are: 30 km Kalyan-Murbad new line, 300 km Jalna-Jalgaon new line doubling of 98 km Ankai-Aurangabad (all three in Maharashtra); and the 100 km Sabarmati-Sarkhej-Dholera new line in Gujarat.

The Niti Aayog considers only projects which entail an investment of over Rs 500 crore. “Many more projects will be taken up on this concept in the future,” a Railway ministry spokesperson said. In the current financial year 2022-23, Railways has allocated Rs 670 billion for capital spend on new lines, gauge conversion and doubling of lines.

As per the toolkit devised by the Railway Ministry, the project assessment would have to answer questions like travel time savings, savings in reduced road stress, increased safety, savings in fuel overall for the country, savings in vehicle operating cost, savings accrued due to reduction in pollution and the like.

See also:
Paras RailTech bags contract of track work for Delhi Metro Pink Line
MMRDA re-invited tender for Mumbai Metro Line-4’s Mogharpada Depot


Since enlarging rail connectivity to far-flung, backward and hilly areas may not be financially viable, the government has decided to give weightage to “intangible benefits” like social, environmental and network effects of such projects. The policy change will help the government to justify connectivity projects of new lines, gauge conversion, doubling of lines, etc, even if they do not generate financial returns. The Railways will now not have to struggle to obtain financial sanction for these projects. The Ministry of Railways has sent a set of four new project proposals for appraisal to the Niti Aayog, justifying their investment based on this new ‘Modified Economic Internal Rate of Return’ model. These are: 30 km Kalyan-Murbad new line, 300 km Jalna-Jalgaon new line doubling of 98 km Ankai-Aurangabad (all three in Maharashtra); and the 100 km Sabarmati-Sarkhej-Dholera new line in Gujarat. The Niti Aayog considers only projects which entail an investment of over Rs 500 crore. “Many more projects will be taken up on this concept in the future,” a Railway ministry spokesperson said. In the current financial year 2022-23, Railways has allocated Rs 670 billion for capital spend on new lines, gauge conversion and doubling of lines. As per the toolkit devised by the Railway Ministry, the project assessment would have to answer questions like travel time savings, savings in reduced road stress, increased safety, savings in fuel overall for the country, savings in vehicle operating cost, savings accrued due to reduction in pollution and the like. See also: Paras RailTech bags contract of track work for Delhi Metro Pink Line MMRDA re-invited tender for Mumbai Metro Line-4’s Mogharpada Depot

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?