Rail ministry receives Rs 10,000 crore savings assurance from private sector

Finances are for 19 ventures under different supportive models of home and Foreign Direct Investment

Navi Mumbai, Maharashtra, March 11, 2015 /India PRwire/ -- The railways ministry has received savings dedication to the tune of Rs 10,000 crore from private sector corporations for development of 19 ventures under participative models of home and foreign direct investment (FDI), minister of state for railways Manoj Sinha said assembly on Monday.

Though, there has been no specific investment tender since the opening of FDI in rail transport previous year, Sinha added. A shareholders' meet was organized on December 5 and conversations with potential shareholders were held to attract private investments, Sinha told.

The ministry had issued sectoral guidelines for home and foreign direct savings in November 2014, classifying diverse areas for private participation. This contains suburban corridors through public private partnership, high-speed rail, devoted freight lines, rolling stock including train sets and engine manufacturing facilities and railway electrification.

The guidelines cover signaling function, freight terminals, passenger terminals, testing facilities and laboratories, and mechanized laundry, non-conventional sources of energy, rolling stock procurement as well as bio-toilets. The bureau had also issued a participative policy for rail connectivity and capacity growth in December, which gives five models for building rail connectivity.

In accordance with Sinha, the administration has identified the Mumbai-Ahmedabad route as the primary corridor to conduct viability study for deployment of high-speed rail facilities. For this sector, two studies have been undertaken - a cooperative viability study co-financed by India and Japan as well as a business development study by France's railways.

The administration is also undertaking a viability study for a diamond quadrilateral network of high-speed trains including four lines - Delhi-Mumbai, Mumbai-Chennai, Chennai-Kolkata, as well as Kolkata-Delhi - in addition to two diagonals -Delhi-Chennai and Mumbai-Kolkata. The whole length of the network will be 10,000 km. The Delhi-Chennai section has been identified for a viability study in collaboration with the Chinese government.

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