Railways keen on PPP model for infrastructure

Railways is seeking the co­operation of the private sector for developing rail infrastructure in the country. For this purp­ose, Railways has framed pub­lic-pri­vate participation (PPP) inve­stment models for its exi­sting as well as new projects. It has also drafted policy for pri­vate participation in rail conn­ecti­vity and capacity aug­men­tation projects.

The policy aims at enabling the state governments in play­ing a proactive role in develo­pment and implementation of rail projects.The state govern­ment would benefit from the project as timely development of rail infrastructure would re­duce conge­stion on the roads.

Indian Railways has prop­osed Special Purpose Vehicle (SPV) model for the operation of sanctioned railway projects.It is generally applicable for san­ctioned bankable new line and gauge conversion projects hav­ing identifiable stakehold­ers either as user of the line or utilities such as ports, mines, exporters, plants and the state governments. SPV will operate on common carrier principle for public transportation of goods and passengers.