Union Railway Minister Suresh Prabhu on Friday set the ball rolling to involve private players in the infrastructure sector of Indian Railways. To take forward the initiative, he chaired an investors meet at Rail Bhavan and discussed various issue pertaining to private investment in railways, especially public private partnership (PPP) and foreign direct investment (FDI) with private stakeholders.
"A framework needs to be put in place to facilitate sustainable long term investment in the rail sector. While railways will continue to be owned by the government, private participation in railway infrastructure sector will be very rewarding for all participants," Prabhu said.
The investors meet discussed the frameworks for PPP, FDI, BOT, rolling stock production units, freight marketing and station development. The minister also released a booklet on the 'overview of the framework for participative models and domestic/foreign investment', published by railway ministry.
"The recent initiative of the government of India to allow FDI in rail sector has opened up large opportunities for investment. The ministry of railways has prepared model concession agreements for different participative models. These agreements will provide a framework for rights and obligations of different parties and risk allocation between them in a fair manner," Prabhu said.
The investors meet was attended by members of the Railway Board and representatives of chambers of commerce, railway PSUs, PSU of the ministry of heavy industry, investment consultants, investment bankers, stakeholders in the infrastructure sector, construction sector, port sector, rolling stock manufacturers and raw material manufacturers and suppliers.
The government of India has allowed 100 per cent FDI in construction, operation and maintenance of suburban corridors through PPP; high speed train projects; dedicated freight lines; rolling stock including trains sets and locomotive/coaches manufacturing and maintenance facilities; railway electrification; signaling system; freight terminal; passenger terminal; infrastructure in industrial park pertaining to railway line/siding and mass rapid transport system.
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