Register to Subscribe



Home arrow News arrow Railway arrow PPP is the action for railways modernization agenda
PPP is the action for railways modernization agenda Print E-mail
Written by Vijay   
Wednesday, 17 December 2008
New Delhi : In order to sustain GDP growth of 8%, capacity and efficiency of rail network need to be ramped up; approval for resources and expertise should be intensified. Today, railways have lost 65% of its freight traffic to roads. “Private sector should be considered as a collaborator for strengthening the system strategically”, recommend Mr. Rajeev Jyoti, Chairman - CII Railway Equipment Division.

He was speaking at Rail Contact 2008; Partners in progress – Indian Railway's modernisation plan and Industry's role, organised on the 12th by the Confederation of Indian Industry (CII) and Indian Railways (IR).

The buyer-seller meet is being organized towards achieving 20% of investment targets from private enterprises. 

In the 10th five year plan the private sector's participation in railways was less than 1%. It is assumed that in the eleventh five year plan, about 20% of railway investments will come through PPPs. Thus out of total investments of INR 2,80,000 crore in the Indian Railways, approximately INR 47,600 crore will be invested by private sector.

In an enlightening presentation, Mr. Siddhartha Das, Practice Leader – PPP, Ernst & Young, urged, "PPP addresses the investment and governance challenges of the sector. Notifying a Railways PPP Policy, setting up a PPP Technical Secretariat can be treated as leading steps for the railways for achieving a world class infrastructure; adhering to timelines and project schedules; protection of quality standards, independent process of certification and improved services quality."

Expressing enthusiasm about Delhi-Mumbai Rail Corridor, which is likely to be operational by 2012, Mr. J P Chowdhary, Past President - CII, stated, "In the context of major initiatives taken in the area of PPP, private sector should not be viewed as a mere supplier, but as associates in achieving a world class railways infrastructure. It is essential to stimulate private investment and PPP as a viable option to attract funding."

Mr. Naresh Agarwal, Vice Chairman - CII Railway Equipment Division, said, "This is the fourth time that CII has organised this buyer seller meet. The meet will throw light on the different areas of railways and identify new opportunities in the sector."

 
Related news
More recent
Earlier on
< Prev   Next >

Sponsors

Mazak - The world's largest machine tool builder
JYOTI - India's most dynamic machine builder
TaeguTec - Cost effective tooling solutions
Advertisement

<< SHARE

Social

AD

Subscribe

Subscribe to MACHINIST by Email

Search

 
RSS 1.0
© 2020 MACHINIST
This site is best viewed with Firefox 2.0 or higher at a minimum screen resolution of 1024x768