Railways Sets Up Panel To Put Bolt Scheme Back On Track

The railway ministry has constituted a four-member committee to review its build, operate, lease and transfer (BOLT) scheme to make it more attractive for private investment.

The review committee has been asked to submit its report within 45 days. A notification on the formation of the committee has already been issued.

The BOLT scheme, launched by the ministry in November 1994, has received poor response from investors.

The railways funds position, which has been a major constraint on development projects, has worsened following the wage settlement with the employees in the wake of the Pay Commissions recommendations. The wage settlement has entailed a net annual burden of an additional Rs 2,500 crore.

Pruning of plan expenditures is one of the ways of reducing expenses, and this in turn necessitates an increased flow of funds from the private sector. In view of this, the committee has been asked to make the BOLT scheme a viable one so that the financial resources of the railways are supplemented by private investors to help accelerate the pace of completion of ongoing projects and undertake new ones.

The committee has been authorised to seek assistance from a consultant for the purpose, particularly in the drafting of the revised BOLT tender documents and for seeking clarifications from the Central Board of Direct Taxes and tax attorneys.

The present scheme assures a 16 per cent return on investment. It covers areas like construction of new rail lines, gauge conversion, electrification, acquisition of rolling stock, besides modernisation of signalling and telecom systems.

The review panel consists of the executive director (projects), Railway Board, S P S Jain, executive director (finance), Railway Board, Usha Mathur, financial advisor and chief administrative officer, Western Railway, S B Kulkarni, general manager (marketing), IRCON International Ltd.