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Modernisation of Indian Railways and readying it for the future have been the over-arching theme for this year’s Rail Budget. Unlike previous ones, this budget widens the scope of private sector participation, according to Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure Finance Ltd.
Private sector participation has been sought in a number of aspects like modernisation, capacity augmentation, hygiene, service quality, etc, he said.
According to him, the proposal to set up a dedicated Railway University to gear up for the technical and non-technical needs of this sector is a step that would go a long way in modernising the skill-sets of this mammoth organization.
Focus on infrastructure creation
Announcement of projects like the Diamond Quadrilateral of high-speed trains connecting metros and promoting tourism through railways were expected.
“When Indian Railways is functioning at a working ratio of 94 per cent, every possible way to mobilise resources have to be explored, especially from non-core non-transportation activities,” he said.
In the light of this, proposals to digitise the records of land owned by Indian Railways and getting it GSA-mapped to tap their commercial potential are welcomed.
Providing rail connectivity to upcoming port projects, linkage to coal mines, and cold storages for fruit and vegetables augur well for the overall improvement of broader economic problems.
“Encouraging the wagon leasing scheme is another positive from this Budget,” Kanoria pointed out.
Grey areas
According to Hemant Kanoria , specifics like restructuring of the Ministry have not been discussed. Again, the issue of private participation has to be cleared.
“Just opening up this sector to FDI (excluding operations) and wishing for private sector participation may not be enough. Indian Railways will need to review its accounting standards before it can expect private sector to come and invest in rail projects in a big way,” Kanoria said.
Another point that needed to be elucidated, he said, was the proposal to reduce market borrowing through Indian Railways Finance Corporation.
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