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Facing a resource constraint, Railways has come up with a new draft policy which seeks increased private participation for rail connectivity and opens the doors for foreign direct investors for expanding its network.
The cash-strapped public transporter has proposed six PPP models for project execution that include creating railway connectivity on private land and forming special purpose vehicles (SPV) for new line and gauge conversion.
The policy has also sought to attract the state government in playing a proactive role in development and implementation of rail projects in their respective states, a senior Railway Ministry official said.
He said the draft policy aims to open opportunity for returns from investment in rail projects and ensure timely availability of rail infrastructure to the beneficiaries such as port, industry and states.
Local bodies, ports, large import and export companies, co—operative societies, infrastructure and logistics providers too have been invited for increasing the rail network.
The official said overseas corporate bodies and foreign direct investors can also participate in asset creation pending clearances by Foreign Investment Promotion Board.
“Once finalised, the policy would replace both R3i and R2Ci policies” he said, admitting these policies could not achieve the desired objectives.
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