Privatization: Indian Railways Will Allow Private Firms To Lay Tracks, Collect Revenues
In a meeting chaired by the Union Minister Nitin Gadkari on Tuesday, the Union Railway minister Ashwini Vaishnaw proposed the idea of setting a policy which would allow private companies to set/create railway lines and generate money from train operations on these set lines.
The regulation would be similar to how the road and highways ministry handed over the road construction to private players, following toll collection to recover their investment after receiving land from the government.
The railway ministry could soon come up with issuing this regulation of authorizing private bodies to create railway lines.
Railway Ministry Proposes Letting Private Players to Construct Railway Lines
In a meeting headed by Union Minister Nitin Gadkari to discuss issues related to environmental clearance, land availability, and land transfer for infrastructure projects, Railway Minister Ashwini Vaishnaw presented the plan of following what the highways ministry did for road construction.
He put forth the plan of allowing private players to build railway tracks and in turn generate their money for investment by charging toll on railway operations on those lines, after receiving land from the government.
As per a report provided by TOI, the railway ministry will develop a policy on what to charge for transferring land to other departments for infrastructure development.
In the meeting, Vaishnaw also highlighted and stressed the importance of including newer technologies and financial models to improve the existing infrastructure of the Railways.
For the presented plan of including private players, and financial models Vaishnaw informed that the railway ministry will work closely with the Ministry of Road Transport & Highways headed by Gadkari.
He also proposed to examine the likelihood of a plan to install railway lines along highways in the land already acquired to make projects viable, added the report.