EXPANSION OF RAILWAYS THROUGH PUBLIC-PRIVATE PARTNERSHIPS

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Indian Railways have taken up expansion of its infrastructure through a number of public-private partnerships. These participations involve equity participation in Special Purpose Vehicles (SPVs) or cost sharing of the projects.

Some of the major initiatives include cost sharing of suburban rail projects by the Governments of Maharashtra, Tamil Nadu, West Bengal and Andhra Pradesh; participation through the SPV route by the Governments of Karnataka and Maharashtra; cost sharing in non-suburban projects by the Governments of Tamil Nadu, Karnataka and Jharkhand; private participation in SPV in Pipavav Rail Corporation Limited and private rail system for providing rail connectivity to Mundra Port.

In addition, there are several proposals on hand, which are being shaped up by appropriate financial engineering to attract private participation.