Railways Ministry to fund infra projects with surplus rail PSU cash
An official from the Ministry of Railways has revealed, on the condition of anonymity, that the Ministry is nearing the finalization of a scheme under which the cash surplus of the public sector units (PSUs) working under the Ministry will be used for funding railway infrastructure projects.
Under the new scheme being finalized by the Railways Ministry, the infrastructure projects to be funded with surplus rail PSU cash will be opened for bidding only to the railway PSUs, under the ‘build-operate-transfer’ annuity model for public-private partnership (PPP).
Noting that the Railways have a shortage of funds for investment in its infrastructure projects, the official said that the objective behind the new scheme is to bring the surplus with railway PSUs in the circuit and “channelize it for infrastructure creation.”
Hinting at the new scheme last month, Railway Minister D.V. Sadananda Gowda had announced in his Railway Budget speech that the Railways was mulling alternative ways to mobilize resources. Gowda had also said that the Railways was keen to tap the cash surplus of railway PSUs for infrastructure projects.
Gowda had said in his speech: “Railway PSUs have done very well and are financially sound. I propose to launch a scheme to bring in investible surplus funds of railway PSUs in infrastructure projects of railways, which can generate attractive returns for PSUs.”
Source – Mint
D V Sadananda Gowda, infrastructure projects of railways, Ministry of Railways, public sector units, Public-private partnership, Railway Minister
