Private Investment for Development of Railway Infrastructure

New Delhi:  A number of policies have been notified to attract private investment for the development of Railway Infrastructure. Some of these are:

Participative policy for capacity Augmentation notified on 10.12.2012 provided five models for building rail infrastructure. These models are: (i) Non-Government Private Line Model (ii) Joint Venture model (iii) Build, Operate and Transfer (BOT) model (iv) Capacity augmentation with funding provided by customers (v) Capacity augmentation through annuity model.

  • Development of Private Freight Terminal (PFT) scheme
  • Automobile Freight Train Operator (AFTO) scheme
  • Special Freight Train Operator (SFTO) scheme
  • Liberalized Wagon Investment Scheme (LWIS)
  • Wagon Leasing Scheme (WLS)

The Participative Policy notified on 10.12.2013 has received good response. ‘In Principle’ clearance has been given for rail connectivity to ports of Jaigarh (Maharashtra), Astranga (Orissa), Rewas (Maharashtra), Dighi (Maharashtra), Hazira (Gujrat) and Tuna (Gujrat) port, while rail connectivity to Dhamara port (Orissa) has been commissioned. Two coal connectivity projects in state of Chhatisgarh are also being undertaken through joint venture route under the policy.

Encouraging response has been received to Private Freight Terminal (PFT) policy and investments for procurement of rolling stock. So far 45 proposals have been received, out of which, notification for 18 Private Freight Terminal has been issued. ‘In principle’ approval has been given for 23 Private Freight Terminals.

Approval of 54 rakes has been given under Liberalised Wagon Investment Scheme (LWIS). Out of these, 17 rakes have been procured/inducted and are running on the system.

M/s GATX and M/s TOUAX have been registered as Wagon Leasing Companies under Wagon Leasing Scheme (WLS)

Approval of 3 rakes has been given under Special Freight Train Operators Scheme (SFTO)

12th Five Year Plan mentions that areas for undertaking Public Private Partnership (PPP) projects are: Logistics Parks, PFT and Freight schemes, Captive Power, Renewable Energy, Energy Conservation, Loco and Coach Manufacturing, Station Redevelopment, High Speed Corridor (Mumbai-Ahemdabad), Elevated Corridor (Churchgate-Virar), DFC (Sonnagar-Dankuni) and Port Connectivity to ports/coals areas.

This information was given by the Minister of State for Railways Shri Adhir Ranjan Chowdhury in written reply to a question in Lok Sabha today.

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