Private Investments + Other Reforms Which Will Take Indian Railways Into The Next Century

All thanks to our super-awesome Railway Minister and his team that Indians are seeing so many fares relaxation, advancements in services, new trains, security and other umpteen measures that are easing the life of an everyday traveller.

In addition to what he has done before, the Railway minister is all set to roll out two major reforms for the public¡ªsetting up a regulatory authority to fix railway fares and creating an infrastructure development fund.

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A major part of these reforms stands still, waiting for a regulatory authority to be formed first and then execute orders; the World Bank has agreed to offer the Railway Infrastructure Development Fund with a total of $5 billion over a period of seven years. The particular fund will be co-anchored by pension and sovereign wealth funds.

The proposed agendas are formed in order to facilitate travellers with better services and enhance the current state of national transporters.

The regulatory authority will play a crucial role in deciding rail tariff while the Railway Infrastructure Development Fund will be used in remunerative projects which have the scope of good returns in a shorter period.

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Mr Prabhu has also proposed that the rail budget shouldn¡¯t stand independent of the general budget and that there should be a merger between the two in 2017. He has also empowered the General Managers and Divisional Managers by taking decentralisation steps and leveraging decision-making powers. He has also made it mandatory making all procurement through an online tendering process.

The official said, "Railways is now exploring non-Budget funding options to implement projects, including high-speed trains, rolling stock, station development, and signalling and infrastructure development which was not before."

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The railway has already formulated a plan to invest 8.56 lakh crore for the next 5 years.

Furthermore, Life Insurance Corporation has provided the railway's Rs 1.50 lakh crore loan for 30 years, of which Rs 10,000 crore has been used so far.

Besides, the Japan International Cooperation Agency had agreed to provide a loan at 0.1 percent interest for a 50-year tenure and a 15-year moratorium for the Rs 1 lakh crore Mumbai-Ahmedabad bullet train. The implementation period for the 508-km project is slated till 2023.

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The above-mentioned stands as addition to the existing budget of Rs. 1.21 lakh crore; Railway aims at increasing the broad gauge commissioning to 19km per day from the current 10km. It would further increase to 25km a day in partnership with the state government.

(Also read; 400 Railway Stations To Get 100 Crore Makeover, With Helipads, Executive Lounges and World Class Facilities)