No spat with Industry Ministry over Freight Corridor: Railways

New Delhi, Oct 26 (UNI) The Railway Ministry today denied that it was in a spat with the Industry Ministry over private sector funding of the Dedicated Freight Corridor (DFC), saying the ambitious project had been put on the fast track for its completion as per schedule.

''The Railways have so far allowed only infrastructure-related investment in the sector, which is consistent with the government's policy,'' Mr Shri Prakash, Adviser (Infrastructure), Railway Board, told reporters here.

Reacting to reports appearing in a section of the media about the differences between the Railway and Industry ministries overv the issue, Mr Prakash said only 'Railway Transport' is reserved for public sector under the Industrial Policy.

Rail Transport is defined as operation of freight and passenger trains, and does not include ownership of track, rolling stock and any other infrastructure related to a railway system.

''The news item regarding private investment in Railways is full of inaccuracies,'' he said, adding that there was no question of referring the issue to the Comerce and Industry Ministries.

The official said the besides the Commerce and Industry ministries, the Finance Ministry ''is also involved in the project, and there is no question of violating the Industrial Policy.'' Mr Prakash said the Railway Ministry had sent a note to the Industry Ministry seeking its opinion on the FDI in the Railways, not on the private investments.

With regard to the private investment in container business, he said it was only to the extent of ownership of rolling stock and provision of container services, as distinct from operation of such trains, which would be carried out by the Railways.

Asked about the investment proposed by South Korean steel major POSCO in the Haridas-Paradeep railway line, he said it was also in the nature of infrastructure investment, expressly permitted under the existing policy.

''In fact, this view has been corroborated by the Ministry of Commerce and Industry, as recently as in October,'' he said, pointing out that 100 per cent FDI was permitted under the automatic route in railway infrastructure as long as trains operations were not involved.

The official further clarified that POSCO had been given only 10 per cent share in that project and did not have a controlling share.

'Its operation will be in the hands of the Railway Ministry,'' he pointed out.

Mr Prakash said several Special Purpose Vehicles, with the private sector participation, were already existing in the Railway sector.

With regard to the Dedicated Freight Corridor Corporation of India LTD (DFCCIL), the SPV that had been formed to execute the project, he said private players would be allowed participation only in the construction and maintenance of infrastructural facilities, such as tracks and signalling while its operational responsibility would rest with the Indian Railways.

UNI SKS RA DS1655