With a view to improve freight earnings, railway minister Mamata Banerjee on Friday proposed

RELATED ARTICLES Direct tax collection to miss budget estimates Govt to present budget for 2012-13 on March 16 Railways to get Rs 3000 crore loan from govt Budget likely to increase tax exemption limit to Rs 2 lakh Govt may lower STT in budget to boost markets

to have increased focus on dedicated freight corridors and emphasised on private sector participation in developing rail infrastructure.

Presenting the railway budget 2009-10 in Lok Sabha, Banerjee said a new policy would be unveiled for developing private freight terminals and setting up of logistics parks under public-private partnership (PPP) mode.

"Several measures are being taken to improve the proportion of freight traffic moving on railways... A new policy would be unveiled to allow construction and operation of private freight terminals and multi-model logistic parks," Banerjee said in Parliament.

Railways are also in the process of bringing together state governments and major logistics players to set up logistics parks, co-habited by multiple players through "participative funding", she added.

"Mega logistics hubs are being planned alongside the proposed Eastern and Western Dedicated Freight Corridors," she said.

Terming the dedicated Western and Eastern freight corridors as landmark ones, Banerjee declared it as "Diamond Rail Corridors" project of the Indian Railways.

The Western Corridor would pass through Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, while the Eastern Corridor would pass from Ludhiana to Kolkata via Punjab, Uttar Pradesh, Bihar, Jharkhand and West Bengal.

"To expedite the project execution in a time bound and cost effective manner, I will be setting up an expert committee who will look into all aspects and develop a robust business plan," Banerjee said, adding the government has approved the extension of the Eastern Corridor up to Dankuni.

On developing similar dedicated freight corridors in other parts of the country, she said: "Pre-feasibility studies for the other trunk routes, such as North-South, East-West, East-South and Southern (Chennai-Goa) corridors have been conducted and Ministry of Railways will take steps for further action in this regard."

While Delhi-Mumbai Industrial Corridor, comprising logistics parks, mega power plants, industrial hubs and rail port connectivity, is being developed along the Western Corridor under PPP mode, the Eastern Industrial Corridor would be executed alongside the Eastern Corridor.

"I propose to put Railways land banks to productive use. This will also avoid increase in cost and will help in early start of industrial projects," Banerjee said, adding the Budget has included investments in rolling stock production, assembly facilities and coach rehabilitation at Dankuni, Majerhat and Naopara in the Eastern Corridor region.

The inherent advantages of proximity to coal and oremines, large strength of labour force and metal works market would help in developing a rail-based industrial cluster in the Eastern Industrial Corridor, she said.

On increasing proportion of freight traffic, Banerjee said, "Besides improving the loading of coal, iron ore, cement, fertilizers and foodgrains, railways are seeking to increase their share in new traffic streams like automobiles, fly ash etc."

Apart from encouraging private ownership of special purpose rolling stock for commodities and private operation of freight terminals, Budget said: "Permission to access private sidings will be given to containers which will help in attracting piecemeal traffic presently not being carried by Railways".

A premium service for container movement with assured transit time is being considered for "time sensitive" cargo, it added.