Standing Committee moots PPP model for Railways

NEW DELHI, 25 APRIL: The standing committee on railways is in concurrence with the Planning Commission for resorting to public private partnership (PPP) model in building rail connectivity and capacity augmentation.

In a report presented to Parliament this week, the committee observed that so far investments in railways through PPP have been small. Private investment mobilisation in the 11th Plan is likely to be to the tune of four per cent of the plan outlay, which is far less if compared to the private capital share in other sectors such as ports 80 per cent, telecom 82 per cent, electricity 44 per cent, airports 64 per cent and roads 16 per cent.

The committee shares the view of the Planning Commission that some areas of railways offer excellent opportunities for private investment during the 12th Plan. These include rolling stock manufacturing units, multi-functional complexes, freight train operators, and laying of new lines which are in the pipeline.