2 loco factories at Rs 40k crore

2 loco factories at Rs 40k crore

2 loco factories at Rs 40k crore

In keeping with Prime Minister Narendra Modi’s ‘Make in India’ initiative, the Railways will build two new locomotive factories at cost of Rs 40,000 crore. These loco factories will come up one each in Madhepura and Madhaora in Bihar.

 “These will boost employment potential in entire eastern region,” Rail Minister Suresh Prabhu said.

 Since a major chunk of Railways’ internal revenues come from freight traffic, the minister also promised building more freight traffic corridors and put three freight corridors on high priority.

 “Given the emphasis on rapid expansion of freight business, it is essential to build more dedicated freight corridors for increased traffic with consequent benefits for the economy and environment,” the railway minister said..

 Accordingly, the North-South corridor connecting Delhi-Chennai, East-West connecting Kharagpur- Mumbai and  East Coast connecting Kharagpur-Vijayawada will be put on high priority.

The Railways earn 65 per cent of their internal revenue through freight traffic and 25 per cent through passenger traffic. But in the last few years, the freight traffic has shifted to road due to an increase in freight rates to cross subsidise losses in running passenger trains. Cross subsidy from freight to passenger has crossed Rs 30,000 crore this year.

 Prabhu said his aim is to revive rail freight traffic and for that he is in talks with various companies.

 Inadequacy of warehousing and transportation facilities is also one of the causes that that keep potential customers away from the Railways, he said adding the rail side warehousing and cold storage facilities will be developed on vacant land near freight terminals.

To focus on providing last mile connectivity for freight business and significant reduction in logistic costs, at least 10 goods sheds will be developed in 2016-17.
 “To capture the automobile traffic, we will soon inaugurate India’s first rail auto hub in Chennai,” Prabhu said.