Railway PPP projects stuck on the slow track amid investor apathy

Feb 06 2013, 02:02 IST
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SummaryThe Indian Railways plan to attract investments of R83,000 crore through public-private partnerships during the 12th Five-Year Plan is languishing in the loco shed, thanks to weak investor interest, poor project design and lack of coordination among various wings of the government.

told FE.

Rail loco factories in Bihar: The future of Rs 2,053-crore diesel loco factory at Marowhra, Bihar and electric loco unit at Madhepura looks uncertain. The proposal to build these factories was mooted in 2007. The Railway Board had invited 11 bids for these projects. American giants such as GE and EMD are in the short list, but there is no time line set yet for awarding the projects. There were issues related to assured off-take of locomotives (a demand of private players), the duration of maintenance of these locos by the companies and land transfer. All these issues are being resolved, said a rail board official. The PM had set a deadline for the bidding to start by December 31, but that was not to be.

Multi-modal Logistics Parks:

The plan was to set up about 20 logistic parks, with an estimated investment of about Rs 10,000 crore from private sector. There is no progress on the project yet.

Commercial utilisation of surplus land: The plan to lease railway land to private players for building multi-function complexes is still on paper. It was expected to earn railways Rs 6000 crore.

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