Lok Sabha Question No. 1886 (UNSTARRED), answered on 2016-03-09
Subject: Private Participation in Infrastructure Sector
Ministry: RAILWAYS
Asked by: POONAMBEN HEMATBHAI MAADAM, B.V. NAYAK, K. KAMARAAJ

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA

UNSTARRED QUESTION NO. 1886

## TO BE ANSWERED ON 09.03.2016

## PRIVATE PARTICIPATION IN INFRASTRUCTURE SECTOR

1886.  SHRIMATI POONAMBEN MAADAM:

SHRI B.V. NAIK: DR. K. KAMARAJ:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether the Government has any plan to involve private participation in the infrastructure sector of Railways;
- (b) if  so,  the  details  thereof  and  the overview of framework for PPP and FDI;
- (c) the details of the companies/enterprises which are being considered for the same; and
- (d)  the  total  funds/resources  required  to  augment  infrastructure capacity and modernisation?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI MANOJ SINHA)

(a)  &  (b):  A  Participative  Policy  for  rail  connectivity  and  capacity augmentation  was  issued  in  December,  2012  which  provides  the following five models for building rail connectivities:

- (i) Non- Government Railway (NGR) model
- (ii)
- (iii)
- Joint Venture (JV) model
- Build Operate and Transfer (BOT) model
- (iv) Capacity  augmentation  with  funding  provided  by  customers model
- (v) Capacity augmentation through annuity model

Government  in  August,  2014  had  permitted  100%  Foreign  Direct

Investment (FDI) in construction, operation and maintenance of:

- (i)  Suburban corridors through Public Private Partnership (PPP)
- (ii) High speed train projects
- (iii) Dedicated freight lines
- (iv) Rolling stock  including  trains  sets  and  locomotive/coaches manufacturing and maintenance facilities
- (v)  Railway electrification
- (vi)  Signaling system
- (vii) Freight terminal
- (viii) Passenger terminal
- (ix) Infrastructure in industrial park pertaining to railway line/siding
- (x) Mass Rapid Transport System.

Ministry of Railways have issued its Sectoral guidelines in November, 2014 for Domestic/Foreign Direct Investment (FDI) in rail sector.

(c): The Private Companies/Enterprises which have been permitted to build rail connectivity under the Participative Policy include:

- (i)   JSW Jaigarh Port Limited for Jaigarh port rail connectivity.
- (ii)  Rewas Port Limited for Rewas port rail connectivity.
- (iii)  Balaji  Infra  Development  Private  Limited  for  Lalitpur-Udaipura (Electrification)
- (iv) Dhamra Port Limited for Dhamra port rail connectivity.
- (v)  Navayuga  Engineering  Company  Limited  for  Astrangra  port  rail connectivity.
- (vi) Nargol Rail Link Limited for Nargol port rail connectivity.
- (vii) Simar Port Limited for Chhara port rail connectivity.
- (viii) Hazira Port Infra Limited for Hazira port rail connectivity.
- (ix) Dighi Port Limited for Dighi port rail connectivity.

Apart  from  the  above,  Public  Sector  Undertakings  (PSUs)  of  the Ministry of Railways/Government of India have also been permitted to take up rail connectivity projects.

Electric and Diesel Locomotive factories at Madhepura and Marhowra entailing  FDI  have  been  awarded  to  M/s  Alstom  Manufacturing  India Limited and M/s GE Diesel Locomotive Private Limited, respectively.

(d): Estimated requirement of investment is ₹ 8,56,020 crore (approximately  135  billion  US  dollars)  over  five  years  to  augment infrastructure capacity and modernisation.

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