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| 'Rlys unlikely to get $13-bn PE funds in 11th Plan' |
| Press Trust of India / New Delhi Feb 01, 2010, 21:20 IST |
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The Railways has so far raised a platry $84.8 million through private equity investments against a target of $13 billion for the 11th Plan period as it is yet to roll out investment-friendly models, a study by an industry chamber said here today.
The Railways hopes to raise private equity investments to an extent of $13 billion during the 11th Plan to support its expansion drive including building a dedicated freight corridor, an Assocham study said, adding however, it has so far raised a meagre $84.8 million.
Elaborating on the reason behind this the report, Assocham said: "The Railways has yet to roll out investment friendly models to support its diversification drive on lines anticipated by PEs and also ensure reasonable return on capital deployed."
Since the 11th Plan began in 2007-08, the Railways has received limited PEs participation until now as only two deals so far have been announced worth $56.7 million and $28.1 million, Assocham said.
"Significant private sector participation would be required in the sector. Apart from projects to be developed on PPP basis, large railway projects such as a dedicated freight corridor and the outlays of rail tracks to improve connectivity will offer opportunities for the private sector," Assocham President Swati Piramal said, while releasing the study report.
With a total network 63,332 km connecting 8,000 stations across the country, the Railways is the second-largest rail network in the world under a single management.
The Railways' freight segment accounts for about 70 per cent of the overall revenues and carries around 40 per cent of the freight traffic and 20 per cent of the passenger traffic.
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