Lok Sabha Question No. 1450 (UNSTARRED), answered on 2019-11-27
Subject: Railway Development Fund
Ministry: RAILWAYS
Asked by: Venkatesh Netha Borlakunta

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.1450 TO BE ANSWERED ON 27.11.2019

## RAILWAY DEVELOPMENT FUND

## 1450.  SHRI VENKATESH NETHA BORLAKUNTA:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether the World Bank  and  the Railways are working together  to  create  a  Railway  Development  Fund  that  would  partly finance the $142 billion investment plans for the core infrastructure sector and if so,  the details thereof;
- (b) whether part of this plan funded by multilateral bodies and the World Bank, that  has  global  experience  and  access to  technology and the Government has held a meeting with senior officials of the World Bank in this regard recently, if so, the details thereof and the outcome thereof;
- (c) whether the Railway officials attended a World Bank meeting on  transportation,  interacted  with  business  leaders  at  the  U.S.  India  Business Council-  met  officials  of  the  IFC  and  the  IFC  could help  Indian  Railways  to  monetize  its  huge  assets  and  if  so,  the details thereof;
- (d) whether it is also a fact that globally Railways get 30-40 per cent of their income from non-railway operations but in India, it is not even two per cent and putting the huge prime real estate held by  the  Railways  into  productive  use  would  be  the  cornerstone  of this strategy and if so, the details thereof; and
- (e) whether the Government encourage U.S. businesses to invest in Indian Railways that has been opened up to 100 per cent FDI in most part of its operations and the steps taken/being taken to give a facelift to the IR and revolutionize the way Indians travel, transport

goods and services and conduct business, if so, the details thereof and the present status thereof?

## ANSWER

## MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY

## (SHRI PIYUSH GOYAL)

- (a) and (b):  Government had carried a study through World Bank to examine  the  feasibility of setting up of a Railways  of India Infrastructure  Development  Fund  (RIIDF).  However,  taking  into account the fact that a National Investment and Infrastructure Fund (NIIF)  has  already  been  set  up  by  the  Ministry  of  Finance,  it  has been decided not to proceed with the proposal.
- (c) As per available record with Ministry of Railways, no Railway official has attended any World Bank meeting on transportation and interacted  with  business  leaders  at  the  U.S.  -  India  Business Council.
- (d) It is true that globally several Railways get significant part of their income from non-Railway operations. Several steps have been taken to increase non-fare revenue of Indian Railways by monetization of land and other assets. These include:

- i. Policy for leveraging Mobile Assets, Out of Home Advertising, Rail  Display  Network,  Unsolicited  proposals  and  Content  on Demand.
- ii. Commercial  utilization of  vacant  land  through  Rail  Land Development Authority (RLDA).
3. (e) Government  of  India has permitted 100%  Foreign  Direct Investment (FDI) on automatic route in the following activities/areas of Railway Infrastructure:
- i. Suburban corridor projects through Public Private Partnership;

ii. High speed train projects;

iii. Dedicated freight lines;

- iv. Rolling stock including train sets, and locomotives or coaches manufacturing and maintenance facilities;

v. Railway Electrification;

vi. Signalling systems;

vii. Freight terminals;

viii. Passenger terminals;

- ix. Infrastructure in industrial park pertaining to railway lines or sidings including electrified railway lines and connectivities to main railway line; and

## x. Mass Rapid Transport Systems

Foreign Direct Investment in these areas is subject to sectoral guidelines, which include necessary safety certification from central government or its authorized entity. The FDI policy is also open for U.S. businesses.

In order to give a facelift to the Indian Railways and cater to diverse needs of passengers, some of the steps taken include:

- i. Significant  step-up  in  investment  for  capacity  enhancement, Safety and Modernization of Railways.
- ii. Improvement and upgradation of various passenger amenities like foot over bridges, lifts, escalators, toilets, battery operated vehicles, wheel chairs, waiting rooms.
- iii. Leveraging  information  technology  for  online  ticketing  and enquiry services.
- iv. Introduction of various premium train services like Humsafar, Tejas, Antyodaya, Utkrisht Double Decker Air-conditioned Yatri (UDAY), Mahamana  and coaches like Deen Dayalu and Anubhuti.

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