Railway Ministry withdraws PPP-based station monetisation proposal

15 Dec 2022 CW Team

The proposal by the Ministry of Railways to monetise stations through a public-private partnership has been withdrawn.

The government has adopted a clear and hard stance that the railroads would not be privatised, the subject has been cleared at the cabinet level, the Ashwini Vaishnaw, Railways Minister previously stated.

The Engineering, Procurement, and Construction (EPC) mode will now be used for projects. The Ministry of Railways has been instructed to quicken the sale of other assets, including, but not limited to, trains, goodsheds, hill rail, stadiums, railroad colonies, and land parcels.

Stations, the largest asset class, decreased. Stations that were previously requested in PPP mode are now being accepted in EPC mode. Currently, an estimate of Rs 49.99 billion has been made for the likely revenue from asset monetisation of Indian Railways assets under National Monetisation Pipeline (NMP) in the current fiscal.

In contrast to its goal of Rs 300 billion for the current fiscal year, the ministry has only so far raised Rs 18.29 billion.

On November 14, Nirmala Sitharaman, the Minister of Finance, met with Parameswaran Iyer, CEO, Niti Aayog, to discuss the implementation of the NMP.

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