Railway minister Mamata Banerjee would like to modernise the railways. She would also like to improve the availability of rolling stock. So on Friday, she announced that the railways would be setting up “rail-based industries” in the country.
Of course, money will have to be found for these capital-intensive projects. While Ms Banerjee has often been speaking about PPP with regard to rail projects, the response has been lukewarm so far from the private sector given the long gestation period of such projects, the uncertainty about returns and of course the railways own policies.
Ms Banerjee told the Lok Sabha, “Rail infrastructure requires meticulous planning. Rising demand for coaches, locos and wagons cannot be met immediately because their manufacture requires components whose production has to be planned well in advance.”
Following speculation about the fate of projects announced in previous years in Madhepura, Marhowra, Kanchrapara and Dankuni, Ms Banerjee said in her speech, “All these projects are progressing and a core group of officers is working on these PPP/JV industries to take them forward.”
The minister also outlined the various steps taken by the railways so far in order to have “business-oriented policies”. She said the policies had drawn an encouraging response and 85 proposals have been received so far. To take these forward, a single window system has been set up under the secretary Railway Board, she added.