Rlys seek major role for pvt sector in 11th Plan

The railways have chalked out a massive modernisation scheme for implementation during the Eleventh Five-Year Plan in partnership with the private sector, Minister of State for Railways Naranbhai J Rathwa said.

"The plan will carry forward the railways' remarkable turnaround in recent years. It is important that at a time when the country's economy is growing rapidly, the railways become the main mode of transport for both goods and passengers," the minister said while inaugurating the International Railway Conference organised by the CII in New Delhi.

The effort, he added, was to keep the railways as the country's main transport system by reducing the unit cost of transport.

The conference, Rathwa said, was an opportunity for both private companies and the railways to work out new ways of collaborating. The railways' modernisation plans are driven by new technology for coaches, signaling, IT-related services, safety, computerisation, engines and tracks.

Private companies are expected to invest in segments including rolling stock, tracks, signaling, IT and switching.

The railways currently carry over 13 million passengers on 11,000 trains a day. It is the second largest rail network in the world, and the principal mode of transportation in the country.

The railways will use both technology and staff training to enhance its safety standards. Its Internet-based ticketing service sells over 10,000 tickets daily.

Compared with road transport, the railways cost four times less in terms of environment impact, use a third of space, and offer better mobility, said Rolf Hardi, vice-president and global head, Engineering, Bombardier Transportation.

"It is estimated that the global cost of traffic congestion is over $500 billion annually. The developing world bears a large percentage of this," he added.

He said citizens want transport that is safe, fast, affordable, reliable and clean. "National, state and city governments face the challenge of better transport. Railway transport can meet that challenge if it is cost-effective, efficient, safe and environmentally sound," he added.

However, hurdles to attract effective private sector participation in the railways' expansion plans remain. The railways' procurement policy, while being transparent and tender-based, still favours public sector companies.

"The government should offer the private sector a level-playing field," said Rajeev Jyoti, president and managing director, India, Bombardier.