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All rly PPP projects on standby

All rly PPP projects on standby

The Indian Railways have put on hold all PPP projects including the proposed EMU/coach factory at Kanchrapara, diesel locomotive factory at Marhora and electric locomotive plant at Madhepura on assured purchase orders basis. The Railways had committed about Rs 8,000 crore a year for these three projects. Multinational companies mainly from the US and Europe were involved in the bidding of these three PPP projects.


Based on the current situation, the railways was finding it difficult to commit for the assured offtakes due to the fund crunch. However, it has put a temporary hold on these PPP projects and has set up a committee to examine how funds can be provided in general and also to its own production units. The committee comprising of six senior railway officials is examining how assured purchase contracts can be provided because railways also have their own production units.


Railways’ annual purchase is estimated to be between Rs 15,000 and Rs 18,000 crore for wagons, coaches and locos.

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