Business Daily from THE HINDU group of publications
Friday, Jun 16, 2006

Cross Currency

Group Sites

Logistics - Railways
Industry & Economy - Infrastructure

Rlys sends freight corridor proposal to Cabinet

Mamuni Das

RITES doing a detailed feasibility study

The proposed track
Proposal to set up a SPV for the over Rs 27,000-cr dedicated corridor
Railways expected to have a majority stake in the SPV
SPV to be in charge of infrastructure, whereas Railways would maintain rolling stock
Revenues for operations likely to go to Railways, which will pay SPV access charges for using infrastructure

New Delhi , June 15

The Railway Ministry has sent a proposal to the Cabinet for setting up a special purpose vehicle (SPV) for the over Rs 27,000-crore dedicated rail freight corridor, according to sources.

The project would be funded by a combination of internal resources, budgetary support, assistance of bilateral or multilateral agencies, and market borrowings.

Another possible source of partial funding would be by the Japanese Government under the Special Terms of Economic Partnership Scheme, said officials.

After the SPV is set up, equity participation from various stakeholders would be finalised.

Rail India Technical and Economic Services (RITES) — a public sector undertaking under the Ministry of Railways, which is already doing a detailed feasibility study for the project, is likely to complete the study by end-2006. A final location survey would also be undertaken, said sources.

The Railways is expected to have a majority stake in the SPV. The SPV would be in charge of infrastructure including tracks and signalling system, whereas the Railways would maintain the rolling stock.

The revenues for operations are likely to go to Indian Railways, which in turn would give access charges to the SPV for that portion of the journey for which the infrastructure of the dedicated freight corridor is used.

More Stories on : Railways | Infrastructure

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AI Express to connect Amritsar, Mangalore to Dubai soon: CMD

World-class touch for eight non-metro airports in South
Wai Hai Lines begins China to West Asia direct service
SCI Q4 net down 43 pc on high bunker cost
Sahara board: Security nod awaited for Naresh Goyal
`Pvt operators' rolling stock must have stringent audits'
Rlys wants call centres that sustain themselves
Rlys sends freight corridor proposal to Cabinet
VSNL to set up cybercafes at 68 railway stations
Uppal-Kamath may bag deal for Rly budget hotels
`Zindagi Exp' coming to Ernakulam
L&T wins Rs 750-cr NHAI BOT project

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line