'Detailed blueprint of PPP to be announced soon'

New Delhi, Oct 9: Railway Minister Lalu Prasad today said his ministry was finalising the details of the Public Private Partnership (PPP) model for participation in its various projects, and a detailed blueprint would be announced soon.

Holding forth his ground that the Railways would not countenance any move for its wholesome privatisation, Mr Prasad said private players would be welcome only through the PPP route and that too in selected projects.

''The ministry is in the process of formulating detailed guidelines for PPP. We will specify all the areas where the private sector will be welcome. We will not leave any scope for ambiguity in this regard,'' he said.

''At the same time, I will not leave anyone in doubt that ownership will remain with the Railways. Privatisation does not mean total abdication of social obligation,'' he said, pointing out that Railways was the lifeline of the country.

The minister said a consultative committee would also be formed, which would facilitate regular interactions between the business chambers and the Railways.

The minister was making the inaugural address at a conference on ''Reforms in Indian Railways: Leading Change and Transformation and Emerging Opportunities for Public Private Partnership (PPP),'' organised by the PHDCCI.

Container operations, developing world class stations, Dedicated Freight Corridor (DFC), passenger amenities, commercial utilisation of surplus land, container trains and manufacturing of locomotives and coaches were some of the areas where the PPP model could be gainfully employed, he suggested.

He said the construction of the DFC would require concrete sleepers in huge numbers, and the private sector could participate in it.

Further, the Railways proposed to set up oulets for agro products at 7000 stations through PPP. These outlets would purchase perishable items like milk, fruits and vegetables at reasonable prices and would be carried to the markets through airconditioned containers, he pointed out.

''This is the one area which has enormous potential for joint ventures,'' he said.

Mr Prasad also refuted the notion that Railways' turnaround was possible because of the boom in the country's economy. ''The turnaround has been made possible because of structural changes in the Railways, its efficient functioning and its focus on optimisation of capacity utilisation.'' Railway Board Chairman J P Batra, who also addressed, said the institutional mechanism for facilitation of Public Private Partnership was already in place with the creation of a dedicated PPP Cell in the Board.

''A decision to allow private operators in container services has already been taken and a Model Concession Agreement (MCA) is under finalisation,'' he said.

Besides Rs 22,000-crore DFC project, the avenues for PPP include world class railway stations, passenger amenities and commercial utilisation of 43,000 hectares of land available with the Railways.

Mr Batra said some projects such as freight terminals and logistics parks would be set up exclusively with the assistance of the private sector.

Operation of container trains and setting up of SPVs for manufacturing locomotives, coaches and wagons and hospitality, tourism and catering sectors were other areas, which were unfolded before private players for their participation.

Among the other opportunities for PPP, Mr Batra listed super-speciality hospitals, construction of private sidings, inland container depots, parcel services and rail side warehouses.

IRCTC is spearheading budget hotels on the BOT model and also inviting private players for setting up Food Plazas, static and on-board catering services and laundry service.

''While economically unremunerative and socially relevant projects will be carried out through budgetary resources, the economically remunerative high-priority, short-gestation and high-return projects will be met through internal generations,'' Mr Batra said.

However, all other projects would be carried out through PPP, which had emerged as a serious option, he said.

UNI