Rail ministry receives Rs 10,000 crore investment commitment from private sector

Funds are for 19 projects under different participative models of Domestic and Foreign Direct Investment

The railways ministry has received investment commitments to the tune of Rs 10,000 crore from private sector companies for development of 19 projects under participative models of domestic and foreign direct investment (FDI), minister of state for railways Manoj Sinha told Parliament on Monday.

However, there has been no specific investment proposal since the opening of FDI in rail transport last year, Sinha added. An investors’ meet was organised on December 5 and discussions with potential investors were held to attract private investments, Sinha said.

The ministry had issued sectoral guidelines for domestic and foreign direct investment in November 2014, identifying various areas for private participation. This includes suburban corridors through public private partnership, high-speed rail, dedicated freight lines, rolling stock including train sets and locomotive manufacturing facilities and railway electrification.

The guidelines cover signalling system, freight terminals, passenger terminals, testing facilities and laboratories, non-conventional sources of energy, mechanised laundry, rolling stock procurement and bio-toilets. The ministry had also issued a participative policy for rail connectivity and capacity augmentation in December, which provides five models for building rail connectivity.

According to Sinha, the government has identified the Mumbai-Ahmedabad route as the first corridor to conduct feasibility study for deployment of high-speed rail services. For this sector, two studies have been undertaken - a joint feasibility study co-financed by India and Japan and a business development study by France’s railways.

The government is also undertaking a feasibility study for a diamond quadrilateral network of high-speed trains comprising four lines — Delhi-Mumbai, Mumbai-Chennai, Chennai-Kolkata, and Kolkata-Delhi — and two diagonals —Delhi-Chennai and Mumbai-Kolkata. The total length of the network will be 10,000 km. The Delhi-Chennai section has been identified for a feasibility study in cooperation with the Chinese government.