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The ‘Make in India’ campaign, a new national program designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure, which was formally launched by hon’ble Prime Minister Shri Narendra Modi on 25 September, 2014, includes Railways sector among the 25 identified sectors for facilitating investment.

 

  • 100% FDI in the railway infrastructure segment has been allowed recently which has opened up opportunities for participation in infrastructure projects such as high-speed railways, railway lines to and from coal mines and ports, projects relating to electrification, high-speed tracks and suburban corridors.
  • Indian Railways has begun exploring the PPP mode of delivery and aims to award projects worth USD 1,000 Billion through the PPP route.
  • The sector aims to boost passenger amenities by involving PPP investments in provision of foot-over bridges, escalators and lifts at all major stations.
  • Last-mile connectivity to boost business activity in and around ports and mines has been proposed through the formation of special purpose vehicle (SPV) companies under the Public Private Partnership (PPP) model.
  • The Indian Railways aims to involve private equity through individuals, NGOs, trusts, charitable institutions, corporates, etc. to provide passenger amenities such as battery-operated carts to facilitate movement for senior citizens and differently abled, at stations.
  • To strengthen rail connectivity with various ports, IR has floated SPVs under the PPP mode. Pipavav Rail Corporation Ltd., Bharuch-Dahej Railway Company Ltd., Kutch Railway Company Ltd., Hassan-Mangalore Rail Development Company, Obullavaripalle-Krishnapatnam Railway Company Ltd., and Anugul-Sukinda Railway Company Ltd.,  have been established.
  • Three rail connectivity projects namely Gevra Road-Pendra Road new line, Raigarh-Bhupdeopur new line and Jaigarh Port connectivity projects are being implemented through the joint venture route.
  • The long-term strategic plan of the Ministry of Railways is to construct six high-capacity, high-speed dedicated freight corridors along the Golden Quadrilateral and its diagonals.
  • The 2014–15 Union Budget envisages a diamond quadrilateral network of high speed rail, connecting major metros and growth centres of the country.
  • The development of identified stations to international standards with modern facilities and passenger amenities on the lines of newly developed airports, through PPP mode.
  • Private investment in railway logistics is to be encouraged — the IR proposes to modernize its logistics operations by setting up logistic parks that provide for warehousing, packaging, labelling, distribution, door-to-door delivery and consignment tracking in order to achieve better efficiency, mechanisation of loading and unloading will be given top priority.
  •  A scheme for private participation in parcel movement will be launched shortly whereby procurement of parcel vans or parcel rakes by private parties will be facilitated.
  • To develop a network of freight terminals, the Policy of Private Freight Terminals on the PPP model is being further refined.
  • A proposal is in place to harness solar energy by utilizing rooftop spaces of railway stations, other railway buildings and land, through the PPP mode.

Further information on investing in the sector can be seen at

http://www.makeinindia.com/sector/railways/

 

Railways Related Agencies

Indian Railways

Container Corporation of India Ltd.

Dedicated Freight Corridor Corporation of India

Rail Vikas Nigam Ltd.

Railtel Corporation of India Ltd.

Rail India Technical and Economics Services Ltd.

IRCON International Ltd.

Rail Land Development Authority

Mumbai Railway Vikas Corporation Ltd.