Kochi: Hopes on the Palakkad railway coach factory continue to flicker as it figures on the list of projects the Railway ministry has prepared for domestic or foreign direct investment.
The list, part of the ‘sectoral guidelines for domestic/foreign direct investment in Railways’, was released soon after Mr Suresh Prabhu assumed charge as Railway Minister on October 11.
The Ministry has also listed Ernakulam as one of the passenger terminals selected for renovation with fresh investment. The Mumbai-Ahmedabad and the Chennai-Bengaluru-Mysore high speed corridors also figure in it.
Hopes on the Palakkad railway coach factory continue to flicker as it figures on the list of projects the Railway Ministry has prepared for domestic or foreign direct investment.
The list, part of the ‘sectoral guidelines for domestic/foreign direct investment in Railways,’ was released soon after Mr Suresh Prabhu assumed charge as Railway Minister on October 11.
The ministry has also listed Ernakulam as one of the passenger terminals selected for renovation with fresh investment. The Mumbai-Ahmedabad and the Chennai-Bengaluru-Mysore high speed corridors also figure in it. The projects entail an investment close to Rs 1 lakh crore.
The union cabinet had in 2012 approved the Rs 550-crore Palakkad project which aimed at making 400 coaches for the Railways a year.
The project, the foundation stone for which was laid the same year, has been hanging fire since then as the government insisted that it be taken up on public-private participation mode.
Public sector Steel Authority of India Limited had evinced interest in the project but the proposal made no headway. Former railway minister D.V. Sadananda Gowda had assured the state government that the ministry would retender the project after request for quotation evoked no response in 2013.
The ministry note said it identified dedicated freight lines, manufacturing of rolling stock, including train sets and locomotives, railway electrification, signalling system, freight terminals/logistics parks, passenger, terminals, standalone passenger corridors, (branch lines and hill railways) for fresh investment.
The note, however, said the list was indicative and new projects can be added, or listed projects can be deleted depending on the outcome of project specific detailed technical/financial due diligence by the Ministry of Railways after submission of the techno economic feasibility report and financial/revenue model.
“The projects will be implemented only when found to be financially viable and bankable with viability gap funding admissible (20 percent of the cost of the project or as modified from time to time) as per the current VGF policy,” the note said.
