RailEnquiry

NEW DELHI: The UPA government said the model agreements for private participation in railway projects—ranging from non-government railway to build-operate-transfer, joint ventures and capacity augmentation via funding by customers—would be finalized soon.

The move comes as the railways, in the absence of fare increase, has failed to generate resources for funding modernization, leave alone capacity addition despite successive railway ministers adding new trains to appease their constituency. In fact, it has repeatedly failed to meet the targets. Although the Cabinet cleared the proposal on Thursday, the government will need to get the bureaucracy on board as it has repeatedly blocked any attempt by the private sector to get a foothold.

Similarly, Lalu Prasad's plans for PPP locomotive factories in Marhaura and Madhepura, both in Bihar, are yet to take off despite interest from companies such as GE.

The unions are opposing any attempt to hand over operation and maintenance to private players, which could deter investors looking to enter the BOT space for building new lines. Citing poor finances, they are, however, not opposed to letting private players invest in infrastructure development.

"We don't have any problem with private sector participation in infrastructure development. But we will oppose if railways tries to hand over operation and maintenance to private companies to private companies," said Shiv Gopal Misra, general secretary, All-India Railwaymen Federation.