Union Railways Minister, Ms. Mamata Banerjee, in her Rail Budget proposals has focused on private investments by announcing a slew of incentives for the PPP projects. The Minister called upon the private players to invest in PPP projects in a big way. Private investment in railways could increase from the current Rs, 1,000 crore to Rs. 5,000 crore in the next couple of years, she said. Huge opportunities for private investment in railways include: building multi level parking facilities, multi modal logistic parks, auto hubs, high speed transit corridors and rolling stock units. Ms. Banarjee also promised six drinking water bottling plants, a rail axle factory, four wagon factories and a refrigerated container factory, up-gradation of railways stations, coach manufacturing factory. She also announced the setting up of an institution within the Railways to speed up public private partnership. Not content with this she also announced the formation of Special Task Force (STF) for clearing up PPP investment on a priority basis within 100 days of application. STF has been entrusted with task of framing investor-friendly policy guidelines. Union Railways Ministry has set a target of procuring 18,000 new wagons. This has generated significant interest in the private sector. Big players like Alstom, Bombardier Transportation, Siemens Railways, Tigagarh Wagons, Texmaco and BEML are set benefit a lot from this proposal. In her budget Ms. Banarjee has proposed that private operators would invest in infrastructure and run special freight trains for commodities including automobiles, vegetable oil and chemicals. To facilitate private investment especially in the areas of port connectivity ‘R 31’ policy has been rolled out. Commenting on the Budget proposals, Vice Chairman, CESC, Sanjiv Goenka, said that the proposed new business model for the Railways will enable greater participation by private sector. More wagons and other equipment would boost the economy and demand for transportation would expand and improve railways finances substantially. Budget represents a bold leap of faith with targets that are very ambitious and offer enormous scope for further engagement with Indian industry and opened up a great scope for innovative financing wedded to socially and commercially viable projects, he added. Chief of Srei Infrastructure Finance Hemant Kanoria also appeared upbeat when he expressed similar views stating that it is very refreshing to note that the Railways Minister is keen to ensure private investors interest and private participation would surely improve railway finances in the long run.
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