Why can’t railway stations be like airports, asks Narendra Modi-Financial Express
Past efforts to support the cash-strapped Indian Railways’ modernisation plans through the public-private partnership (PPP) model have had little if any success, least of all the project to build 100 world-class stations flagged by then railway minister Dinesh Trivedi in the 2012-13 Budget. However, the NDA government is revisiting the model, possibly with more incentives to private investors.
Ahead of the Railway Budget FY15 set to be unveiled on Tuesday, Prime Minister Narendra Modi has pitched for a larger role for the private sector in the the railways, including upgrading stations through a sustainable PPP model. The idea is to create commercial complexes at the stations that would ensure revenue streams robust enough to attract private operators.
At the inauguration of the 25-km Katra-Udhampur rail line in Jammu on Friday, Modi said: “We want railway stations to have better facilities than airports. Stations need to be modernised and this can be done through the PPP model because it is economically viable. I have discussed it with railway officials and you will see a change in future. We will work it out soon.”
The PM added: “In (the PPP model), private parties would also be ready to invest because this is a good project economically and will benefit everyone. This would be a win-win situation.”
Modi said the stations in metros and important cities such as Jammu would be among the first to be developed using private funds.
The UPA government, it may be recalled, planned to renovate 100 major railway stations with around Rs 10,000 crore of private funds. However, private players have stayed away, unconvinced of its commercial viability. The railways later scaled down the plan. The newly-formed Railway Station Development Corporation is currently looking at only five stations to be redeveloped with private investments: New Delhi, Anand Vihar (in the capital), Chandigarh, Bhopal and Pune.
One advantage of the PPP model is that it could be cost-neutral for the railways. The railways, which had reported an unhealthy operating ratio of 90.4% last year, is struggling to find funds for replenishment of old rolling stock, leave alone expansion. Its recent tariff hikes — 14.2% across classes in the case of passenger fares and 6.5% for freight charges — had to be partially withdrawn in the case of short-distance suburban travel due to the political backlash.
In the 2013-14 budget too, there was an announcement that the railways would raise Rs 2,000 crore through PPP for its station development plan, but the railways couldn't raise a single rupee.
The railways eyed investments of Rs 83,000 crore through PPPs during the 12th Five-Year Plan, but the programme is languishing as barring a couple of locomotive factories in Bihar, there was barely any investor interest.
Estimated to cost Rs 1,132.75 crore, the 25-km Udhampur-Katra line that was made operational on Friday in fact missed several deadlines. Katra station is environment-friendly as it will be run by solar power.
Modi said the Indian Railways should make its railway station green by installing solar power. The train from Udhampur to Katra will traverse through seven tunnels and over 30 small and large bridges. The 120-km rail link between Katra and Banihal is already under construction and is expected to be completed by 2019. From Banihal to Baramulla (via Srinagar), there are already island railways operational. There will be direct trains connecting New Delhi and Srinagar by 2019. The Katra station is the railways largest greenfield station in the history of independent India
Link Financial Express
PM Narendra Modi hints at increased private sector role in Railways
Ahead of the rail budget, Prime Minister Narendra Modi today hinted at an increased role of the private sector in development of railways.
"We want the railway stations to have better facilities than airports. This is our dream and it is not a difficult thing to do and this is economically viable too. I have discussed it in detail with my Railway friends. You will see a change in near future.
"In that, private parties would also be ready to invest because this is a good project economically and will benefit everyone. This would be a win-win situation project and we want to move ahead in this direction in the coming days," he said.
The Prime Minister was addressing a gathering at the inauguration of the Katra rail line project in Jammu.
Modi said the railway stations in metros and important cities such as Jammu would be priority for the government with regard to development of railway stations.
He said the Railway Ministry has been given a detailed outline of the project.
Railways Minister Sadananda Gowda will present his maiden Rail Budget on July 8 in Parliament. The Government has already hiked the fares for passenger travel and freight transportation.
The Prime Minister said with the inauguration of the railway link and the hydel power project in Uri in the evening, "Jammu and Kashmir's development will get both speed and energy."
He said railways is an environment-friendly mode of transport and it will be spread in Jammu and Kashmir.
Stressing that the Himalayan states have similar problems and opportunities, he said there is a need for a "common model" of development for them.
Modi said he had come to the Mata Vasihno Devi shrine during his election campaign and "today we begin our development journey from here."
He said six trains would be running from the Katra station to different destinations in the country and three sets of local trains would also be running from Jammu to the station.
Railways is considering extending Jammu Mail and Sampark Kranti Express up to Katra, besides introducing new trains, including Katra-Kalka Express, New Delhi-Katra AC Express.
There is also a possibility of launching a new train between Varanasi and Katra, a railway official said, adding the purpose is to connect two holy places by train. An estimated 10 million devotees visit the shrine every year.
Railway Protection Force (RPF) has been stationed at vulnerable locations all along the track in protected bunkers to maintain round-the-clock vigil
Katra station is equipped with modern facilities, including tourist guide counter, cloak room, waiting hall, VIP lounge, escalators and lifts and parking spaces.
The train connectivity to Katra is part of the ambitious Kashmir rail link project marking region's rail connectivity with the rest of the country.
The Prime Minister will fly to Srinagar where he will address a 'Sainik Sammelan', official sources said. He may touch upon India's ties with neighbouring Pakistan at this event.
After his lunch with Governor N N Vohra, the Prime Minister will inaugurate the second phase of 240 MW Uri Hydel project which has been built by the state-run National Hydel Power Corporation (NHPC).
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