The Railways plan to invest massively in modernising rail network and infrastructure. It has allocated Rs 1,102 crore for 2012-13 to improve passenger amenities services.
Boost For PPP Scenario
Learning from its past experience on PPP, the Railways proposes to provide greater control to the rail-user by making them a stakeholder. A step in this direction is a proposal to include a member PPP/Marketing in the Railway Board besides a member safety/research
Railways have also announced formation of Railway Station
Development Corporation to develop stations across the country. This special purpose vehicle will draw upon the success stories from world over, adopt a suitable revenue model and target redevelopment of 100 stations in the next five years. Being funded through PPP route, these efforts will be cost neutral for Indian Railways. With a view to facilitating hassle-free passenger boarding, the Railways has decided to introduce a slew of measures, including setting up of executive lounges and installation of escalators at 50 major stations. Like airport lounge, the executive lounge, a first in Railways, will have facilities such as seating arrangement, food and beverages, wheel chairs for senior citizens and the physically challenged. The executive lounges will come at stations like New Delhi, Howrah, Mumbai and Bengaluru. The lounge will also have Wi-Fi facility, business centre with fax, lap top facility, locker facility and washroom.
Similarly, to undertake upgradation of goods sheds as also to cooperate with State Governments, Railways is going for the PPP model. Besides, Coal, Power, Shipping and Steel Ministries were approached for identification of appropriate rail connectivity projects. A total of 17 such projects have been sanctioned and another 28 projects have been identified. These also will be implemented through the PPP route.
Trigger Consumption
"The Railways plan to invest massively in will augur well for steel makers such as SAIL and Tata Steel. Such a move will trigger steel consumption, which has seen a sluggish growth in the current fiscal.
"The four-fold increase in investment over the next five years at Rs 7.35 lakh crore will open up a lot of opportunities for us," said SAIL Chairman, Mr C.S.Verma. SAIL is the largest steel supplier to the Railways, estimated at one million tonnes annually.
"Mr Sushil Maroo, CFO of Jindal Steel and Power Ltd (JSPL), said the Rail budget will trigger consumption of both long and flat products in the years to come. "We hope that there will be more of demand with the increase in investment by the Railways," he added. JSPL is setting up a plate manufacturing facility in Angul, Orissa.
The steel makers have seen a sluggish growth in consumption in the current year on account of decline in offtake from sectors such as automobile and consumer durables.
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