Indian Railways confident of meeting its future targets: K.C.Jena
Written by Vijay   
Saturday, 15 November 2008
New Delhi: Shri K.C.Jena, Chairman, Indian Railway Board and also Chairman, UIC, said that Indian Railways require an investment of over Rs. 2,50,000 crore during the ongoing XIth Five Year Plan to augment and upgrade the infrastructure. Most of this, about Rs. 90,000 crore, will come from internal generation and as per the present indications, Central Government may supplement it through a budgetary support of Rs. 60,000 crore.

He said that despite the global recession at present, Indian Railways is confident of achieving its target of carrying 1100 million tonnes of freight and 8.4 billion of originating passengers by the year 2011-12 i.e., the end of XIth Five Year Plan. 

Shri Jena said that growth would falter unless Railways carry out a well thought out programme for capacity augmentation, removal of bottle-necks, modernization of systems and new innovative ways of conducting business. Therefore, a significant expanded role has devolved upon mobilizing of extra-budgetary resources including through public-private-partnerships (PPP) in the XIth Five Year Plan.

The 'First UIC Investment Forum' which brought together 27 world dignitaries including top officials from major global financial investment companies and consultants from 14 countries such as Morgan Stanley Bank, Booz & Co., JP Morgan, DB International, Babcock & Brown, Ernst & Young, Vossloh Locomotives, GmbH and East Japan Railway, to focus on investments required in Rail Sector in the region with a special emphasis on Indian Railways, was inaugurated by the Minister of State for Railways Dr. R.Velu here today. The '1st UIC Investment Forum' is being jointly organized the by the Ministry of Railways, Government of India and International Union of Railways (UIC).

Shri Jena said that PPP is not possible without mutual respect and a deeply shared spirit of co-creation and sharing of gains between government and private sector. He said that Railways have identified and earmarked areas for PPP on this basis. These include; world class stations, setting up of manufacturing units and logistic parks, catering & tourism etc. These are areas where the needed complementarities exist and can be harnessed to the advantage of Railways.

After having an extremely good though limited experience with PPP, Indian Railways have created a dedicated Public Private Partnership (PPP) cell in the Ministry to provide a single-window service for PPP initiatives and to speed up the execution of projects so that it can be expanded in scale and scope, Shri Jena added.

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