Union Budget proposes PPP to unleash faster development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services

Special Purpose Vehicle (SPV) proposed to invest in Suburban Railways

Government will complete the dedicated freight corridor project by 2022: Union Budget

Massive programme of Railway station modernization to be launched this year

Metro-railway initiatives to be enhanced by encouraging more PPP

Public-Private Partnership (PPP) proposed by the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2019-20 in Parliament today to unleash faster development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.

The Finance Minister said that it is estimated that Railway Infrastructure would need an investment of ₹ 50 lakh crores between 2018-2030.  Given that the capital expenditure outlays of Railways are around 1.5 to 1.6 lakh crores per annum, completing even all sanctioned projects would take decades. 

The Finance Minister further said that Indian Railways suburban and long-distance services do a phenomenal task in cities like Mumbai and smaller cities. Railways will be encouraged to invest more in suburban railways through Special Purpose Vehicle (SPV) structures like Rapid Regional Transport System (RRTS) proposed on the Delhi-Meerut route. The Minister added that “I propose to enhance the metro-railway initiatives by encouraging more PPP initiatives and ensuring completion of sanctioned works, while supporting transit oriented development (TOD) to ensure commercial activity around transit hubs”.

The Minister also said that “We will complete the dedicated freight corridor project by 2022 that will free up some of the existing railway network for passenger trains”. The Minister further said that “To make railway travel a pleasant and satisfying experience for the common citizen, we will launch a massive programme of railway station modernization this year”.

Public-Private Partnership to accelerate railway infrastructure and suburban projects, including SPV-backed services and station modernization. Union Budget proposes Public-Private Partnership mechanisms to accelerate completion of railway tracks, rolling stock manufacturing and delivery of passenger and freight services, promote suburban rail investment through Special Purpose Vehicle structures, enhance metro initiatives with more PPP and support Transit Oriented Development, and launch a massive programme for railway station modernization while targeting completion of the dedicated freight corridor by 2022.