With an aim to enhance the investments in railway sector, Indian Railways has stated that it is presently framing policies to attract private investment as the government has simplified the procedure to remove hurdles in doing business with investors. Minister of State for Railway Manoj Sinha stated that the railways finalized five public-private partnership (PPP) models for the development of stations, freight terminal, rail over bridge (ROB) or rail under bridge (RUB) and port connectivity.
Manoj Sinha further stated that trains will also be run on PPP model for tourism purpose. Some tourist trains in religious circuits can also be run by private players. Admitting that there are still some hurdles for attracting more private investments, Minister added that several steps have been taken in the recent past to decentralize the system and all remaining hurdles will be removed in a month.
The government has allowed 100 percent foreign direct investment (FDI) in railways. Barring operation, FDI is allowed in eight areas including high speed, dedicated freight line and suburban trains. Till now, Indian railways has attracted Rs 16,000 crore private investments.
Indian Railways is an important sector for India and has the potential to raise India's economic growth by over one percent. Therefore, it has become imperative to modernize, strengthen and expand the Indian railway network.