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31 Aug, 2012

India To Spend Billions on Upgrading Railways


New Delhi, 30-August, 2012 (Ministry of Railways) – India is projecting private investment of more than IRs 79.83 crores in a range of railway projects to be developed under the upcoming 12th and 13th Five-Year Plans, Minister of State for Railways Shri K. H. Muniyappa said in a reply to a question in Lok Sabha (Lower House of Parliament).

Indian Railways has identified Public Private Partnership (PPP) investment requirements in the following projects during the 12th Plan although some of them could be commissioned in the 13th Plan (Figures in Rs. crore):

Project Investment Expected
High Speed Corridor (Mumbai-Ahmedabad) 20,000
Mumbai Elevated Rail Corridor (Churchgate-Virar) 20,000
Redevelopment of stations 10,000
Logistics Parks   3,000
Private Freight Terminal & other Freight Schemes   2,815
Port Connectivity Projects   5,000
Dedicated Freight Corridors (Sonnagar-Dankuni) 10,022
Loco and Coach manufacturing units   3,000
Energy projects   6,000
Total 79,837

A modified outlay of Rs. 5.48 lakh crore has been proposed for the 12th Five Year Plan by the Ministry to the 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. Efforts are under way for mobilising these resources.

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.

As on April 1, 2012, there are 173 ongoing doubling projects in various stages of execution nationwide. An expenditure of Rs. 10,426 crore has been incurred on these projects upto March 2012. Indian Railways have huge throwforward of projects and limited availability of resources. Projects progressing as per availability of resources. As on April 1, 2012, Railways require about Rs. 38,736 crore for completing ongoing doubling projects.

Railways projects have a long gestation period. The targets for projects are generally fixed on yearly basis based on availability of resources, progress made, and consequently, projects get completed in phases. The projects which are in advance stage of completion are given priority for resource allocation.

To augment resources other than Gross Budgetary Support, steps have been taken to generate extra budgetary resources through State participation and other beneficiaries, Public Private Partnership, defence funding, declaring some projects ad National Projects and implementation of bankable projects through Rail Vikas Nigam Limited.

Zone-wise details of ongoing doubling projects as on April 1, 2012 are Central Railway (7 projects), East Coast Railway (14 projects), East Central Railway (3 projects), Eastern Railways (38 projects), Northern Railways (20 projects), North Central Railway (3 projects), North Eastern Railway (5 projects), Northeast Frontier (4 projects), North Western Railway (11 projects), Southern Railway (15 projects), South Central Railway (5 projects), South Eastern Railways (17 projects), South East Central Railway (7 projects), South Western Railway (9 projects), West Central (7 projects) and Western Railway (4 projects).