Indian Railways is now truly emerging as a public-private partnership business, moving away from decades of government taking up the sole responsibility of investing, creating and maintaining this mammoth infrastructure.
Partly driven by an immediate need to minimise strain on government finances, give a boost to the private engineering and manufacturing sector and also to bring in latest technologies available across the globe, Railways is turning to the private sector with a renewed zeal in a methodical way.
Railways is also set to allow companies run their own private wagons on its track systems, thereby reducing demand for railways’ own wagons. And last week, it awarded a contract to a private sector player to build tracks with allied infrastructure under the annuity model for the first time.
The move is expected to herald a new phase wherein the private sector turns into a real operating partner, responsible for developing the rail infrastructure and not just remain as a customer who supplies just bogies, wagons and engines. Read More