RSS

Tag Archives: railway projects

Railway projects worth over Rs60,000 crore with state participation.

As many as 16 states have responded till now to Railways’ offer of sharing cost of about 40 projects worth over Rs60,000 crore for speed implementation of laying new lines and development of stations among others.

Railways has undertaken the steps to mobilise resources over and above the available budgetary resources to fast track execution of projects.

“Railway minister Suresh Prabhu had written to all states for becoming partners in rail projects. So far, 16 states have come forward to share cost of 43 projects worth Rs62,379 crore,” said a senior railway ministry official, adding “state governments are sharing 25% to 66% cost of the projects.”

The extent of implementation of projects depends upon the response of the state government as some states are also giving land free for the projects. Besides strengthening connectivity by laying new lines and doubling, Railways is focusing on station development programmes for enhancement of passenger amenities.

The aim is to provide better facilities at stations and states like Odisha, Maharashtra and Chhattisgarh are keen on developing stations at world class level in their respective states, he said.

Chhattisgarh, Gujarat, Haryana, Kerala and Odisha governments have signed the joint venture agreement to create state specific joint ventures companies to undertake project development, resource mobilisation and monitoring of mutually identified rail infrastructure projects with equity participation of Railways limited to maximum 50%.

Andhra Pradesh and Maharashtra governments have also agreed to form joint venture companies, the official said.

The joint venture company can form Project Specific Subsidiary Company (Project SPV) which may have equity holding by other stakeholders like banks,

PSUs, ports, mining companies etc. for implementation. Railways has arranged extra budgetary resources from financial institutions for which railway ministry has signed an MoU with LIC for a loan of Rs1,50,000 crore to be received over a period of five years, for funding capacity enhancement projects.

http://www.livemint.com/Politics/hI3edqUQ12ASgj7w58VnaJ/Railway-projects-worth-over-Rs60000-crore-with-state-partic.html

 
Leave a comment

Posted by on December 28, 2016 in Uncategorized

 

Tags:

Pace of rail project awards doubles this year

Railway projects worth Rs 10,594 crore were awarded in the April-October period, first seven months of this financial year, more than double the value of those awarded in the same period last year, at Rs 4,279 crore.

This comes some months after the railway ministry was rapped by the Prime Minister’s Office (PMO) for slow pace of capital spending and progress on key projects. Suresh Prabhu, the minister, has pushed hard to lure investors, to meet the financial year’s targeted spending of Rs 1 lakh crore.

Among the projects awarded last month was a Rs 1,102- crore contract to Alstom Transport India by Lucknow Metro Rail Corporation, for train sets and signaling systems for the new network planned for the city. The contracts for civil works and electrification of the under-construction Rs 82,000 crore Dedicated Freight Corridor project has also pushed up projects award activity.

Pace of rail project awards doubles this year “Most of these projects involve engineering, procurement and construction (EPC) contracts. Relying on EPC in the wake of limited success in PPP (public-private partnerships) is a correct strategy. If the current rate of project award continues in the railways, the government would be able to award around Rs 2 lakh crore of EPC contracts over five years,” said Abhaya Agarwal, partner-infrastructure at research and ratings agency Ernst & Young.

He said a major cause for the improvement in award of rail projects is the ministry’s decentralising of powers to delegate works to the zonal railways, apart from the huge budgetary support. “This is a very encouraging sign and would allow the railways to create more capacities within a short time frame,” he said.

The railways’ plan size is Rs 1 lakh crore for this financial year, a 53 per cent jump over 2014-15’s spending target of Rs 65,000 crore.

http://www.business-standard.com/article/economy-policy/railway-project-award-activity-more-than-doubles-to-rs-10-954-crore-in-current-fiscal-115112600859_1.html

 
Leave a comment

Posted by on November 27, 2015 in Uncategorized

 

Tags: ,

Cabinet gives nod to four railway projects worth Rs 8351 crore

Seeking to give a boost to the railway infrastructure, Government on Wednesday gave its nod to four rail line projects in Odisha, Andhra Pradesh and Chhattisgarh at a cost of around Rs 8351 crore.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi today gave its approval for the doubling of 189.278 km Kottavalasa-Koraput railway line with a completion cost of Rs 2977.64 crore.

It also approved doubling of 164.56 km Koraput-Singapur Road section railway line with a completion cost of Rs 2361.74 crore and 110.22 km Jagdalpur-Koraput section railway line with a completion cost of Rs 1839.02 crore.

The demand of goods traffic on these existing single lines was increasing over a period due to increase of production of goods and minerals in the vast catchment and subsequent transportation requirement.

Doubling of these lines will greatly ease the ever increasing freight traffic between these sections thereby increasing the revenue of Railways. These projects are likely to be completed in the next seven years during 12th and 13th Plan period.

Koraput district of Odisha, Vizianagaram and Vishakaphatnam districts of Andhra Pradesh will be benefited through the rail line doubling project of Kottavalasa-Koraput.

The Koraput-Singapur Road section railway line doubling is expected to greatly ease the ever increasing freight traffic between these sections and raise the revenue of Railways. The project is likely to be completed in the next seven years during 12th and 13th Plan period.

Koraput and Rayagada districts of Odisha will be benefited through this project. The existing line Koraput-Singapur Road is used as a transportation corridor of goods traffic mainly for minerals and mine products.

Jagdalpur-Koraput section railway line will benefit Odisha’s Koraput district and Bastar in Chhattisgarh.

Besides the Union Cabinet also gave its approval for third and fourth lines between Budhapank and Salegaon via Rajathgarh railway line. This 85 km long stretch will cost a sum of of Rs 1172.92 crore.

The project is likely to be completed in the next three years during 12th and 13th Plan period. Angul, Dhenkanal and Cuttack districts of Odisha will be benefited through this project.

Budhapank junction is located on Sambalpur-Angul-Cuttack section and Salegaon on Angul-Nergundi section and the existing line is catering to the originating traffic from Mahanadi Coal Fields to the Paradip and Vishakhapatnam ports.

http://www.dnaindia.com/money/report-cabinet-gives-nod-to-four-railway-projects-worth-rs-8351-crore-2146628

 
Leave a comment

Posted by on November 22, 2015 in Uncategorized

 

Tags: , , , ,

Suresh Prabhu asks all PSUs to undertake more railway projects

inister of Railways Shri Suresh Prabhakar Prabhu held a review meeting with the CMD/MD of the Central Public Sector Enterprises (CPSEs) under the administrative control of Ministry of Railways. In addition, the meeting was attended by Chairman, Railway Board and other Board Members.

The Railway Minister directed that the CPSEs should ensure transparency in their working and to follow the best practices in their tenders / contracts and other activities etc. He also told the CPSEs to be ready to undertake more Railway projects which may be given to them shortly. They should be ready to leverage their resources and reserves for these projects. Funds should not be a constraint for the Railway projects.

He also directed that all the CPSEs should make all out effort to show profit and hand over healthy dividend to the Railways. Turnover / Production targets fro the financial year 2015-16 should be exceeded. Each of the projects undertaken by them should be meticulously planned. The CAPEX targets should be met without fail. It should be examined whether the production units and workshops of Railways may adopt the method of profit and loss accounting.

The CPSEs have been asked to develop their own Facebook and Twitter handle and inform the public about the good work being done by them.

The Railways CPSEs participated in the review meeting included (1) Container Corporation of India Ltd.(CONCOR), (2) IRCON International Ltd., (3) Indian Railway Catering and Tourism Corporation (IRCTC), (4) Indian Railways Finance Corporation (IRFC), (5) Konkan Railway Corporation Ltd. (KRCL), (6) Mumbai Rail Vikas Corporation (MRVC), (7) Rail Vikas Nigam Ltd. (RVNL), (8) Railtel Corporation of India Ltd. (RCIL), (9) RITES Ltd., (10) Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL), (11) Burn Standar Company Ltd. (12) Braithwaite & Company Limited (13) Bharat Wqagons Engineering Ltd.(BWEL) (14) Kolkata Metro Rail Corporation Ltd (KMRCL).

http://www.business-standard.com/article/government-press-release/suresh-prabhu-holds-review-meeting-with-railway-psus-railway-psus-told-115101900845_1.html

 
Leave a comment

Posted by on October 21, 2015 in Uncategorized

 

Tags:

Debroy panel report: Railways starts work on implementation

Setting the ball rolling to professionalise Indian Railways, the Prime Minister’s Office has asked the railway board to draw a concrete action plan based on the recommendations of the Bibek Debroy committee, which, among other far-reaching reforms, suggested opening the sector for private participation.

“The process has started to implement the recommendations of the Debroy panel,” a source with knowledge on the development told FE.

The report of the committee for mobilisation of resources for major railway projects and restructuring of the railway ministry and railway board, was submitted to the ministry of railways on June 12.

The committee, headed by Bibek Debroy, member of the NITI Aayog, recommended allowing private players to run trains and mooted the creation of three distinct entities (ministry of railways, railway board and an independent regulator) and scrapping of the rail budget. It, however, did not recommend privatisation of the cash-strapped transporter.

The panel has recommended that subsidised tickets be linked to Aadhaar IDs to curb leakages. This would, in effect, result in the central government showing the subsidies on railway fares in the general budget — and the state governments will have to bear their part for suburban trains.

Indian Railways, which carries over 23 million passengers everyday, is suffering from severe congestion, financing constraints and an outdated accounting system.

The panel suggested commercial accounting as a viable solution for managing the railway finances.

The recommendations made by the committee have faced strong opposition from the railway employees unions.

With many of the unions believing that the recommendations made by the Debroy committee are for the privatisation of railways, the joint committee of railway federations/associations in a letter to the minister of railways opposed key reforms like the setting up of an independent regulator, privatisation of security, separation of the ministry and railway board and access to private players in train operation.

Financial Express

 
1 Comment

Posted by on July 16, 2015 in Uncategorized

 

Tags: , , , ,

IIFCL Projects to provide advisory services to Railways; pact soon

In a first, Infrastructure lender IIFCL, which has been mainly focused on roads and power projects, is looking to work closely with the Indian Railways.

To begin with, IIFCL Projects Ltd, a subsidiary of IIFCL, will start providing ‘advisory services’ including appraisal of Railway projects in public-private partnership (PPP) mode.

“We are keen to work with the Railways and a memorandum of understanding is likely to be signed for this purpose between IIFCL and Railways,” SB Nayar, Chairman and Managing Director, India Infrastructure Finance Company Ltd (IIFCL), told BusinessLine.

IIFCL Projects, which was set up in February 2012, will also help in loan syndication for Railway PPP projects that are bankable, said Chief Executive Officer Deepak Chatterjee.

Advisory services could also be provided around structuring of projects, he added. IIFCL Projects offer of project advisory services comes at a time when the Railways is trying to mop up funds through PPP route for building infrastructure. SBI Caps is also actively in discussion with Railways for project advisory services.

So far, for PPP projects, different directorates of Railways have driven the projects and have engaged with different consultants such as PwC, EY and legal firms for drafting agreements. Indian Railways plans to raise ₹5,781 crore from PPP in the current fiscal. Last year, the Ministry had made a list of sanctioned projects of over ₹12,000 crore into which investments could be made.

Line capacity expansion

The identified projects for which broad investment models were also developed include freight lines, electrification and signalling systems to enhance line capacity, factories to build coaches and wagons.

Railways already has over 2,473 km of projects involving investments worth ₹18,619 crore, which are at different levels of implementation.

 
Leave a comment

Posted by on May 26, 2015 in Uncategorized

 

Tags: , ,

Rs.8.5 lakh crore to be invested in railways

Railways Minister Suresh Prabhu on Saturday said an investment of Rs.8.5 lakh crore would be made in the Indian Railways to strengthen and modernise the railway network.

Prabhu said this while addressing the gathering at the Rohtak railway station, 75 km from New Delhi, where he inaugurated the Rs.294-crore electrification of the Rohtak-Bathinda-Lehra Mohabbat rail line.

“In the past, not much investment was made on railways. Resultantly, rail and railway network, instead of strengthening, has weakened.

“In the next five years, target of electrification of 2,000 km railway line every year has been fixed which is the highest so far. The country’s development is directly linked to development of railways,” Prabhu said.

He said the pace of railway projects in Haryana, including the setting up of a proposed rail coach factory, will be further accelerated with an agreement for setting up a Special Purpose Vehicle (SPV) between the railway ministry and the Haryana government.

Prabhu, who was elected to the Rajya Sabha from Haryana last year, said various railway projects were being discussed for the state.

Business standard

 
Leave a comment

Posted by on April 26, 2015 in Uncategorized

 

Tags: , , ,