Rlys to tap Rs 6,005 cr via PPP, Rs 13,800 cr from mkt

12th Five Year Plan expected to boost pvt investments

The cash-strapped Railways will borrow Rs 13,800 crore in fiscal 2015 from market. This is Rs 14,942 crore less than the previous fiscal and implies there will be more space for private borrowers, whose participation is envisaged on a greater scale.

The railway vote-on-account document tabled in Parliament said, the Indian Railways Finance Corporation will raise Rs 12,800 crore in 2014-15 for investment in rolling stock and projects. The rest will be borrowed by the Rail Vikas Nigam Ltd. That apart, the Railways will also mobilise Rs 6,005 crore through Public Private Partnership.

"Extra budgetary resources, including market borrowings through IRFC, 'PPP' and other schemes, has been pegged at Rs 19,805 crore," Railway Minister Mallikarjun Kharge said presenting the vote-on-account in Parliament.

“Investment in railways is being stepped up by partnership with the private sector. PPP projects related to rolling stock manufacturing units, modernisation of railway stations, multi-functional complexes, logistics parks, private freight train operations, liberalised wagon investment schemes, and dedicated freight corridors are in the pipeline and offer excellent opportunities for private investment in the 12th (Five Year) Plan,” he said.

Announcing that Karnataka, Jharkhand, Andhra Pradesh and Haryana had agreed to share cost of several rail projects, Kharge appealed to other state governments to follow suit to create rail infrastructure in their respective areas.

A joint feasibility study for Mumbai-Ahmedabad high-speed corridor, co-financed by the Railways and Japan International Cooperation Agency, which started in December last year, would be completed in 18 months, he said.

For the same corridor, a business development study undertaken by French Railways would be completed by April this year, the minister said. Besides, the department also intended to explore low-cost options for raising speeds to 160-200 km per hour on existing select routes like Delhi-Agra and Delhi-Chandigarh.