Lalu for private investment in Rlys

New Delhi: With Indian Railways coming out of the red, Railway Minister Lalu Prasad is keen to attract private investment and participation.

He is all set to inaugurate the Public-Private Partnership Convention – India Rail on Thursday.

The subjects to come up for discussion at the convention include project finance, heavy haul operations, legal issues, transparency in infrastructure concessions, structured financing in railway projects and freight corridor.

A heavy haul dedicated freight corridor is being planned to match the growing requirement of transportation in the country.

It will be a 2700 km long heavy haul, double line connecting Kolkata with Ludhiana via Sonnagar and Khurja, on the Eastern corridor and Delhi to Mumbai on the Western Corridor.

The scale of investment envisaged is more than Rs 27,000 crore.

The Railways are seeking innovative financing options to optimize cost of funds.

It is in this context that this convention assumes significance.

To obtain exposure on best international practices and expand railways infrastructure on these lines, the Indian Railways have invited experts and technocrats from various fields like Finance, Rail Engineering and Operations, Rail Consultants, Rail persons experienced in Reforms and Legal experts in the area of Public Private Partnership.

The key issues to be discussed include structuring of an ideal debt equity ratio, aspects of strategic partnering with rail user industries, structuring of the track access charges/toll to be realised by the Special Purpose Vehicles from rail operators.

Other points that will come under the scanner are the implementation of the construction project through Build Operate Transfer route to accelerate the pace of construction, advisability of dividing the 2700 KM route into four to five separate bid packages and structuring of debt to the best advantage of the Government with equitable distribution of risks.

Ministers of State for Railways Naranbhai J Rathwa and R Velu, Chairman, Railway Board J P Batra and Financial Commissioner (Railways) R Sivadasan will also attend the convention.