New Delhi: The Union Cabinet will soon consider a proposal to delink rail infrastructure development from the Railway Budget, paving the way for partial corporatisation of the Railways.
With the proposed new rail infrastructure development corporation, financially backed by cross-holdings of cash-rich PSUs, the Centre hopes to ward off political factors while taking up projects.
“The Railways will soon seek Cabinet approval to set up a corporation to develop rail infrastructure. Cash-rich PSUs have shown keen interest in becoming stakeholders. The proposal aims to make rail infrastructure development independent of the Rail Budget,” a Railway Board source said.
The proposed corporation will be tasked with providing “end to end” infrastructure solutions to PSUs engaged in mining activities, besides the Steel Authority of India, oil companies and others. Some state governments, such as Odisha, Chhattisgarh, Gujarat and Aandhra Pradesh, may join in, as well as certain private enterprises.
The move has come in the backdrop of a pileup of railway projects for new rail lines announced over a decade, with majority of them seen financially unviable, but thrust on the Railways due to political considerations.
Furthermore, the proposed corporation would become a channel to route FDI in Railways, with the areas of developing port and mines terminals, last mile connectivity, modernisation of signalling being the likely priority.
