Railways

Growth Drivers

  • The long-term strategic plan of the Ministry of Railways is to construct six high-capacity, high-speed dedicated freight corridors along the Golden Quadrilateral and its diagonals.
  • The sector has taken up port connectivity on priority, through the PPP mode of funding in tandem with the Sagar Mala Project of Port Development. Railways will facilitate connectivity to new and upcoming ports through private participation. So far, in principle, approval has been granted for building rail connectivity to the ports of Jaigarh, Dighi, Rewas, Hazira, Tuna, Dholera, Astranga, Chara and Nargol under the Participative Model Policy of the Indian Railways, amounting to INR 40 Billion.
  • The 2014–15 Union Budget envisages a Diamond Quadrilateral network of high-speed rail, connecting major metros and growth centres of the country.
  • The development of identified stations to international standards with modern facilities and passenger amenities on the lines of newly developed airports, through PPP mode.
  • Private investment in railway logistics is to be encouraged. Indian Railways proposes to modernise its logistics operations by setting up logistic parks that provide for warehousing, packaging, labelling, distribution, door-to-door delivery and consignment tracking in order to achieve better efficiency; mechanisation of loading and unloading will be given top priority.
  • A scheme for private participation in parcel movement will be launched shortly whereby procurement of parcel vans or parcel rakes by private parties will be facilitated.
  • To develop a network of freight terminals, the Policy of Private Freight Terminals on the PPP model is being further refined.
  • A proposal is in place to harness solar energy by utilising rooftop spaces of railway stations, other railway buildings and land, through the PPP mode.
  • During the period of 2012-17, Mass Rapid Transit Systems (MRTS) projects are being planned in Ahmedabad, Bengaluru, Hyderabad, Chandigarh, Chennai, Delhi, Jaipur, Kochi, Kolkata, Mumbai, Patna, Pune, Lucknow and Surat through the PPP model.
  • The share of private investment in MRTS projects is expected to increase from 13% during 2007-12 to 42% during 2012-17.
  • Rail tourism is on the anvil, with emphasis on the introduction of eco-tourism and education tourism in the North-eastern states, the identification of special pilgrim circuits such as the Devi Circuit, the Jyotirling Circuit, the Jain Circuit, the Christian Circuit, the Sufi Circuit, the Sikh Circuit, the Buddhist Circuit and the Temple Circuit. Specially packaged trains for these circuits have been proposed and private participation will be encouraged.

Reasons to Invest

  • 100% Foreign Direct Investment (FDI) in the railway infrastructure segment has been allowed recently which has opened up opportunities for participation in infrastructure projects such as high-speed railways, railway lines to and from coal mines and ports, projects relating to electrification, high-speed tracks and suburban corridors.
  • Indian Railways envisages an investment of INR 8.5 lakh crore in the next five years.
  • The sector aims to boost passenger amenities by involving Public Private Partnership (PPP) investments in provision of foot-over bridges, escalators and lifts at all major stations.
  • Last-mile connectivity to boost business activity in and around ports and mines has been proposed through the formation of special purpose vehicle (SPV) companies under the PPP model.
  • Indian Railways aims to involve private equity through individuals, NGOs, trusts, charitable institutions, corporates, etc. to provide passenger amenities such as battery-operated carts to facilitate movement for senior citizens and differently abled, at stations.
  • To strengthen rail connectivity with various ports, Indian Railways has floated SPVs under the PPP mode. Pipavav Rail Corporation Ltd., Bharuch-Dahej Railway Company Ltd., Kutch Railway Company Ltd., Hassan-Mangalore Rail Development Company, Obullavaripalle-Krishnapatnam Railway Company Ltd., and Anugul-Sukinda Railway Company Ltd.  have been established.
  • Three rail connectivity projects namely Gevra Road-Pendra Road new line, Raigarh-Bhupdeopur new line and Jaigarh Port connectivity projects are being implemented through the joint venture route.
Railways

Foreign investors

ALSTOM
GE
EMD
BOMBARDIER