Railways plans to go with build, operate and transfer (BOT) model as part of a new investment policy to attract priÂvate participation in rail conÂÂneÂctivity and capacity augÂmeÂntation projects. Besides BOT, cost sharing model for doubling and multiple line proÂjects will also be a part of the newpolicy.
Though there are two exisÂting policies to attract private investment, it did not bring the required results. The Railways had earlier formulated a policy for industry connectivity in 2010 and coal and iron ore sector connectivity policy in 2011 to attract private sector.
Railways have a huge backÂlog of pending projects that reÂquire more than Rs 1 lakh crore in investments. While new line projects need about Rs 65,000 crore, the doubling and gauge conversation projects require about Rs 40,000 crore for the imÂplementation of these proÂjects. The new investment poÂlicy would replace the two existing poliÂcies that sought private sector inÂveÂsÂtÂments on rail connectivity projects.
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