'Govt should draw action plan to implement freight policies'

The Centre should draw more financial commitment from states and private sector to sustain long-term financing of dedicated freight corridors (DFCs), says a study.
An action plan should be formulated for implementation of freight-supportive policies, the study suggested.
"There is a need to draw more financial commitment from states and private sector (both domestic and foreign, especially pension funds) to sustain financing in long-term," the study by Assocham-Yes Bank released today said.
It observed that infrastructure development along DFCs is hampered by a combination of delayed clearances, cost overruns, land acquisition and financing problems, and recommended setting up an independent regulatory authority to facilitate projects through coordination with various stakeholders, rationalise tariff and govern business.

"Freight movement plays a major role in the regional economy, shaping cities, creating jobs and generating large revenue. However, capacity expansion, efficiency and safety augmentation are major issues that face the country's Rail sector.
"Inadequate investments in the Railways by the government and the private sector have only made the task of bridging the investment gap more difficult," Railway Minister Suresh Prabhu said in the report.

The report said that timely delivery of the projects is essential to realise the full potential of the DFC strategy.
"Raising funds and investments will be a key driver to ensure that the Indian Railways remain on a fast track for a bright future," Minister of state for Railways Manoj Sinha said.

The report pointed out that land acquisition remains the biggest hurdle, impeding the pace of development and industrialization, recommending suitable amendments to the acquisition policy and focused interventions such as landowner cooperatives which can ensure minimum resistance from the affected families and help expedite infra projects.
Moreover, it said, a stable macro-economic regime and simplification of regulatory and taxation process including GST is important to meet the project's needs.