Rail workers' union opposes FDI, offers help in raising funds

Red-flagging the government's plan to attract foreign direct investment (FDI) into the railways, workers' union National Federation of Indian Railways has offered to help raise funds through internal resources like utilisation of PF deposits and commercialisation of its land.
"Railways has about 13 lakh employees and we will appeal to each of them to come forward in raising massive funds for the national transporter," National Federation of Indian Railways (NIFR) General Secretary M Raghaviah said here today.
Besides, NFIR has also suggested commercial utilisation of the vast vacant land of the railways in an effective way to mop up revenue. "If the vast track of vacant land of railways can be commercially exploited, it would generate a good source of revenue and there will be no need for FDI," he said.

Apprehending privatisation of the railways under the garb of 100 per cent FDI, Raghavaiah said it is not in the interest of the nation as overseas investment in the rail network will compromise the security of the country.
Acknowledging poor financial health of the railways, he said, "We have offered our PF and gratuity to be kept in railways for five years. We have submitted details of the internal resource mobilisation plan to the Debroy Committee."
The Debroy Committee has been constituted to suggest ways to fund rail projects and also restructuring of the Railway Board. Facing a serious fund crunch, the national transporter has recently opened more areas in the sector for FDI.

According to the latest decision, new areas like installation of bio-toilets, cleaning of trains and setting up of mechanised laundries are also being opened up for FDI.

Earlier, 100 per cent FDI was allowed only in high-speed trains, suburban trains and dedicated freight corridors.
Raghavaiah, who has met new Railway Minister Suresh Prabhu, said, "We have told the minister about the danger in allowing FDI in railways. We are planning to meet him again shortly."
Several rail projects are being delayed for indefinite period for lack of resources and there is a huge requirement of funds for capacity enhancement and infrastructure upgradation.