Railway goes for all track FDI

 

The ministry listed the projects in a note on ‘sectoral guidelines for domestic/foreign direct investment in Railways’, released soon after Suresh Prabhu assumed charge as railway minister on October 11. 

 

The ministry has also listed 11 passenger terminals including Vijayawada and Ernakulam for renovation with fresh investment. The Mumbai-Ahmedabad high speed project alone accounts for an investment of Rs 63,180 crore. The Palakkad rail coach factory also figures on the list. 

 

The ministry’s note said it identified dedicated freight lines, manufacturing of rolling stock including train sets and locomotives, railway electrification, signaling system, freight terminals/logistics parks, passenger, terminals, standalone passenger corridors, (branch lines and hill railways) for fresh investment. 

 

The note, however, said the list is 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 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 per cent of the cost of the project or as modified from time to time) as per the current VGF policy,” it said.