Lalu invites industry to join rail projects

New Delhi, Oct 16: Railway Minister Lalu Prasad today invited private players to participate in Railways' non-core activities through the Public Private Participation (PPP) route but trashed any suggestion of the privatisation of the government's biggest department.

Sending out a strong message to corporate houses and private players to join the Railways' phenomenal turnaround, Mr Prasad said the opportunties were enormous for their investment.

''I have set the PPP process rolling by forming a co-ordination and liaison committee in the Railway Board that would interact between apex trade and commerce chambers and the Railways,'' he said.

''The mandate of the committee is to hammer out clear-cut policies on the PPP that would benefit both private players and the Railways,'' he said.

The minister was making his inaugural address at a conference on ''Public Private partnership in Indian Railways'', organised by the FICCI here.

Railway Board Chairman J P Batra, Financial Commissioner R Sivadasan and Member (Traffic), Railway Board, S B Ghosh Dastidar, were also present on the occasion. Mr Sudhir Kumar, Officer on Special Duty to the Railway Minister, made a presentation on the ''Turnaround of Indian Railways''.

Mr Prasad said there were a number of possibilities for participation of private sector in projects like modernisation of railway stations, setting up of agro product outlets at stations, construction of sidings and logistic parks, wagon manufacture, port connectivity and setting up of dedicated freight corridor.

Elaborating, he said the container policy had been liberalised for participation of the private sector, which would be investing Rs. 2,000 crore for manufacture of wagons and terminals.

The Indian Railway Catering and Tourism Corporation (IRCTC) has also encouraged private participation in catering and parcel business.

''With the surplus of more than Rs 13,000 crore, the Railways are on a fast track and we have set a target of Rs 20,000 at the end of this fiscal,'' he said.

FICCI President Saroj Poddar said the Eleventh Plan of the Railways was likely to be fixed at Rs 350,000 crore, and such a stupendous outlay would throw up enormous opportunities for the private sector participation.

Railway Board Chairman J P Batra said a high-level advisory committee, comprising members of apex chambers of commerce and industry and retired members of the Board, had been formed.

'Inputs from their interactions will be used for giving a final shape to the Railways' XIth Plan,'' he said.

In addition, a high-level committee had been set up to oversee effective and quick implementation of PPP projects in identified areas, Mr batra said, adding that the first meeting of this committee wpuld be held by the month-end.

UNI