Railways moots PPP model for infrastructure

Rail infrastructure, rail, private sector in developing countries than for cooperation have been proposed. For this purpose, the existing railway as a public private participation in the investment model for a new project has been fabricated. It has a railway connection and the ability to increase private participation in the project, a policy drafted.

Rail project development and implementation of a proactive policy of the State Government to play an active role during the mission. State of the railway infrastructure, which is important for economic development, as well as to development projects on time, to reduce road congestion will be a benefit.

Indian Railways has approved the operation of special purpose vehicles and railway projects (SPV) model proposed. Generally, the new line and gauge conversion of the approved bankable line or port, mine, exporters, plant, and the State Government has identified the utility users as appropriate for the stakeholders of the project. SPV common carrier of goods and passengers on public transportation for the policy will work.

Organizations or public agencies through the development of Indian Railways project by project and cost consulting, project design and land requirements, and other components required for the project bankability of the project will be deployed.

Acquisition of the land itself as a SPV SPV is not funded by the Indian Railways will be a mutual decision. Land ownership will vest with the Railways. SPV will be the annual land lease for the entire leave period for a token amount.

The SPV will have equity participation in economic participation. SPV is an IR-A PSU with a partner 26% equity share in joint venture with the railways as a minimum holding.

Revenue from the operation of the Indian Railway line will be collected through its commercial staff. Revenue flow from the project on line and length of the SPV for freight operations will be established through revenue sharing.

The project will be the SPV will be built. However, the Indian Railways or the SPV may be a construction contract between the agency to create a given type is selected. Project SPV or IR-to-line maintenance or through an O & M contract. SPV is the case in the maintenance, supervision / certification shall be by the SPV by the Indian Railway of / certification on the price paid.



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