Title - RAIL NEWS CENTER: Economic Viability of Railways

A modified outlay of Rs. 5.48 lakh crore has been proposed for the 12th Five Year Plan by the Ministry to Planning Commission for meeting the requirements of expansion, modernization and safety. For financing this outlay, adequate Gross Budgetary Support, successful implementation of Public-Private Partnership (PPP) in identified areas and mobilization of internal resources through conventional and non-conventional means would be necessary. All out efforts are being made for mobilizing these resources.

Foreign Direct Investment (FDI) in railway projects is governed by the existing policy of Government of India. Indian Railways have identified following areas for implementation through Public-Private Partnership – station development, logistic parks, private freight terminals, high speed corridor (Mumbai-Ahmedabad), elevated corridor (Churchgate-Virar), locomotive and coach manufacturing units, Dedicated Freight Corridors (Dankuni-Sonnagar section), Port Connectivity projects etc.

Various steps have been taken to improve economic viability of Railways including improving efficiency and throughput, controlling expenditure, investment of plan funds in priority areas, involving state governments in construction of railway projects and thrust on Public Private Partnership to get private investment.

This information was given by the Minister of State for Railways Shri K. H. Muniyappa in written reply to a question in Lok Sabha today.