PPP to finance rail projects: Gowda

Tags: Rail budget, News
The bulk of India's future railway projects will be financed through public-private partnerships, railway minister Sadananda Gowda said on Tuesday, in a bid to modernise the vast but underfunded network.

In his maiden budget, Sadananda Gowda said his ministry would also seek cabinet approval for allowing foreign direct investment in the state-owned network, but passenger services would be excluded.

"The bulk of our future projects will be... by the PPP model," he told India's parliament, referring to public-private partnerships.

India's railway, the world's fourth-largest, has suffered from years of low investment and populist policies to subsidise fares. This has turned a once-mighty system into a slow and congested network that crimps economic growth.

The decision to push private investment signals the appetite Prime Minister Narendra Modi's new government has for taking tough and unpopular decisions he has said are needed to revive the economy.

Reform of the railways has long proven politically sensitive. Successive governments have backed away from modernization, preferring instead to use the system to provide cheap transport for voters, and jobs for 1.3 million people.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India must redefine poverty based on mobile haves and have nots

    Who is poor? Who is not?

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Tushar Gandhi

We’re nothing without our farmers

For centuries, India has been an agrarian and a skill ...

Purnendu Ghosh

Love or hate can happen at sight

Hate, like love, is an all-consuming passion. There are people ...

Shona Adhikari

Taking a leaf out of nature for inspiration

I was on a 10-day visit to Bangalore. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture