PM-headed CoI moots SPV for dedicated rail freight corridors

New Delhi, July 2 (UNI) The Task Force on the Delhi-Mumbai and Delhi-Howrah rail freight corridors, set up at the instance of the Prime Minister-headed Committee on Infrastructure (CoI), has recommended the setting up of a Special Purpose Vehicle (SPV) that would construct, operate and maintain the corridors on commercial principles and relying on efficient technology solutions.

The proposed corporate entity would provide the rail infrastructure but would not itself engage in freight business, thus providing non-discriminatory track access on payment of haulage charges by train operators.

''This approach would herald large-scale private investment and competition in freight operations. This underlying separation of rail from wheels would also mark a paradigm shift in the functioning of the Railways which has already introduced private participation and competition in the movement of container trains,'' says the report.

The Task Force, chaired by Planning Commission member Anwarul Hoda, included experts and representatives from the Commission, the Railway Board and the Finance Ministry.

The estimated cost of Western and Eastern Corridors is Rs. 11,446 crore and Rs 9695 crore respectively. As per the current estimate, work on both the corridors will be completed in about five years after the start of construction of the project.

Dedicated freight corridors -- tracks exclusively meant for super fast freight trains cruising at a speed of 90-100 km per hour as opposed to the 25 kmph at present -- will facilitate plying of higher axle load wagon and double stack containers.

Railway Board Chairman J P Batra said the government had received the report on the SPV and a final decision would be taken by the Cabinet by the year-end.

''In the first phase, the decision would be taken on the composition of the SPV and later on its funding pattern,'' he said, adding: ''Hopefully, the SPV would become functional fron the beginning of the next year.'' More UNI SKS Mir BD1136