India Inc hails pvt capital-friendly rail Budget
9 July 2014 11:08 PM GMT
Terming the rail budget as growth- oriented, India Inc on Tuesday said the emphasis on forging public-private-partnerships and attracting FDI will give a boost to infrastructure development and generate jobs. ‘We welcome the proposal for financing bulk of future projects through public-private-partnership (PPP) route that will help overcome the constraint of low investment, enhance connectivity and accelerate the process of modernisation,’ Ficci President Sidharth Birla said.
Presenting the Narendra Modi government's maiden Rail Budget, Railway Minister Sadananda Gowda announced setting up of logistic parks and private freight terminals on PPP model. Noting that the capital intensive Railways has not been successful in raising substantial resource through PPP route, Gowda said that bulk of future projects would be financed through this mode, including the high-speed rail, which requires huge investments.
‘Once you do a PPP it stands on its own. A special purpose vehicle gets created separately and that company is accountable for its return on investment. So, the Indian Railways will benefit from it if it's profitable, otherwise it will not benefit,’ President & CEO South Asia GE Transportation Nalin Jain said at a CII conference here. Asked about potential areas where FDI can be attracted, he said: ‘Locomotive, manufacturing, wagons anything which is moving, are areas where FDI can come in.’
Managing Director of Alstom Transport India Bharat Salhotra said: ‘Opening the Railways' sector to foreign direct investment is a welcome move that would provide the much- needed push to the cash-strapped sector as well as foster creation of world class rail infrastructure.’ PHD Chamber of Commerce President Sharad Jaipuria said the announcements would go a long way to enhance rail infrastructure and generate employment opportunities.
Chief Executive of Railway Business at Larsen & Toubro Rajeev Jyoti sought more clarity on the proposal to seek Cabinet approval on foreign direct investment (FDI). ‘If you have an FDI, you are not going to open FDI with no criterion... ‘ he said. CII President Designate Sumit Mazumder said: ‘If projects are made attractive to private investors, funds through PPP and FDI will be available. Multilateral funding should also be accessed for high speed corridors’. Mahindra & Mahindra CMD Anand Mahindra tweeted: ‘Renewable energy inputs, e-enablement, more pvt sector involvement. And no megalomaniacal schemes. What more were the markets looking for?’
Assocham President Rana Kapoor said the PPP models will attract a lot of private and overseas investment as the new government enjoys a great amount of credibility to deliver.
The Rail Minister also announced connectivity to ports through PPP, procurement of parcel vans and rakes by private parties for resource augmentation.
‘If the Railways' efficiency improves, the overall cost of transportation will improve, providing competitive edge to the exporters,’ EEPC India Chairman Anupam Shah said. ‘Overall focus on project management, e-governance and institutionalising process to involve states in all key decision making will ensure that Railways becomes the true lifeline of the nation,’ Kapoor said. Manish Agarwal, Leader of Capital Projects and Infrastructure at PwC India, said that given limited success on station-modernisation projects so far, the implementation remains to be seen. The Railway Minister had said that some stations will be developed according to international standards through PPP model. Chairman of CII National Committee on Chemicals Nadir Godrej said: ‘Movement of goods from and to ports is critical, this will surely help create jobs in the export sector in inland locations having rail connectivity.’
At `11,790 cr, FY15 borrowing estimate lowered by `2,010 cr
New Delhi:Â Indian Railways will borrow less at Rs 11,790 crore from market through its two companies IRFC and Rail Vikas Nigam Ltd for capital expenditure during 2014-15.
The estimated market borrowing by these two companies during current fiscal were pegged at Rs 13,800 crore from markets, as per the interim Railway Budget for 2014-15 tabled in February.
Thus, there has been downward revision in the market borrowing plan by Rs 2,010 crore for the current fiscal. ‘As I have increased internal resource component of Plan, I propose to scale down market borrowings... to Rs 11,790 crore,’ Railways Minister D V Sadananda Gowda said in his proposals while presenting the Rail Budget on Tuesday. Resources from PPP are kept at the interim (budget) level, he said.
Indian Railways Finance Corporation (IRFC) will raise Rs 11,500 crore in 2014-15 for investment in rolling stock and projects, the Railway Budget document tabled in Parliament said. Besides, the other financial firm under Indian Railway, Rail Vikas Nigam Ltd (RVNL), plans to raise Rs 290 crore through market borrowing. During 2013-14, IRFC raised Rs 14,688 crore while RVNL mopped up Rs 254 crore from the market. Besides, Railways expects to mobilise Rs 6,005 crore through the public private partnership (PPP) route during 2014-15. Also, government made it clear that it would continue with the fuel adjustment component (FAC) to revise the passenger fares every six months.
After presenting his maiden Rail Budget, Railway Minister Sadananda Gowda told reporters, ‘We will continue with FAC which was there in 2013-14 also. There will be a periodic hike once in six months. That was taking place earlier also. This will continue.’ Faced with major challenges like funds crunch and large number of incomplete projects, he said the government proposed to attract private and foreign investment to tide over the critical financial situation. Justifying the FDI proposal, Gowda said, ‘We need huge investment for running bullet trains. There was a ban on FDI on Railways. Now we would request Commerce Ministry to delete that clause so that there can be FDI in infrastructure development.’
Govt to expedite construction of 3 rail lines crucial for coal supplies
New Delhi:Â The government on Tuesday said it will expedite the construction of three critical rail lines to facilitate faster transportation of coal to power plants, thereby helping in bringing nearly 100 million tonnes of incremental traffic to Railways. The announcement comes at a time when the power plants across the country are facing fuel shortages.
‘Railways will speed up construction of critical coal connectivity lines in Tori-Shivpur-Kathautia Area (in North Karanpura, Jharkhand), Jharsuguda-Barpalli-Sardega (in IB Valley, Odisha) and Bhupdeopur-Raigarh-Mand Area (in Chhattisgarh),’ Railway Minister Sadananda Gowda said while presenting Railway Budget 2014-15.
Presenting the Narendra Modi government's maiden Rail Budget, Railway Minister Sadananda Gowda announced setting up of logistic parks and private freight terminals on PPP model. Noting that the capital intensive Railways has not been successful in raising substantial resource through PPP route, Gowda said that bulk of future projects would be financed through this mode, including the high-speed rail, which requires huge investments.
‘Once you do a PPP it stands on its own. A special purpose vehicle gets created separately and that company is accountable for its return on investment. So, the Indian Railways will benefit from it if it's profitable, otherwise it will not benefit,’ President & CEO South Asia GE Transportation Nalin Jain said at a CII conference here. Asked about potential areas where FDI can be attracted, he said: ‘Locomotive, manufacturing, wagons anything which is moving, are areas where FDI can come in.’
Managing Director of Alstom Transport India Bharat Salhotra said: ‘Opening the Railways' sector to foreign direct investment is a welcome move that would provide the much- needed push to the cash-strapped sector as well as foster creation of world class rail infrastructure.’ PHD Chamber of Commerce President Sharad Jaipuria said the announcements would go a long way to enhance rail infrastructure and generate employment opportunities.
Chief Executive of Railway Business at Larsen & Toubro Rajeev Jyoti sought more clarity on the proposal to seek Cabinet approval on foreign direct investment (FDI). ‘If you have an FDI, you are not going to open FDI with no criterion... ‘ he said. CII President Designate Sumit Mazumder said: ‘If projects are made attractive to private investors, funds through PPP and FDI will be available. Multilateral funding should also be accessed for high speed corridors’. Mahindra & Mahindra CMD Anand Mahindra tweeted: ‘Renewable energy inputs, e-enablement, more pvt sector involvement. And no megalomaniacal schemes. What more were the markets looking for?’
Assocham President Rana Kapoor said the PPP models will attract a lot of private and overseas investment as the new government enjoys a great amount of credibility to deliver.
The Rail Minister also announced connectivity to ports through PPP, procurement of parcel vans and rakes by private parties for resource augmentation.
‘If the Railways' efficiency improves, the overall cost of transportation will improve, providing competitive edge to the exporters,’ EEPC India Chairman Anupam Shah said. ‘Overall focus on project management, e-governance and institutionalising process to involve states in all key decision making will ensure that Railways becomes the true lifeline of the nation,’ Kapoor said. Manish Agarwal, Leader of Capital Projects and Infrastructure at PwC India, said that given limited success on station-modernisation projects so far, the implementation remains to be seen. The Railway Minister had said that some stations will be developed according to international standards through PPP model. Chairman of CII National Committee on Chemicals Nadir Godrej said: ‘Movement of goods from and to ports is critical, this will surely help create jobs in the export sector in inland locations having rail connectivity.’
At `11,790 cr, FY15 borrowing estimate lowered by `2,010 cr
New Delhi:Â Indian Railways will borrow less at Rs 11,790 crore from market through its two companies IRFC and Rail Vikas Nigam Ltd for capital expenditure during 2014-15.
The estimated market borrowing by these two companies during current fiscal were pegged at Rs 13,800 crore from markets, as per the interim Railway Budget for 2014-15 tabled in February.
Thus, there has been downward revision in the market borrowing plan by Rs 2,010 crore for the current fiscal. ‘As I have increased internal resource component of Plan, I propose to scale down market borrowings... to Rs 11,790 crore,’ Railways Minister D V Sadananda Gowda said in his proposals while presenting the Rail Budget on Tuesday. Resources from PPP are kept at the interim (budget) level, he said.
Indian Railways Finance Corporation (IRFC) will raise Rs 11,500 crore in 2014-15 for investment in rolling stock and projects, the Railway Budget document tabled in Parliament said. Besides, the other financial firm under Indian Railway, Rail Vikas Nigam Ltd (RVNL), plans to raise Rs 290 crore through market borrowing. During 2013-14, IRFC raised Rs 14,688 crore while RVNL mopped up Rs 254 crore from the market. Besides, Railways expects to mobilise Rs 6,005 crore through the public private partnership (PPP) route during 2014-15. Also, government made it clear that it would continue with the fuel adjustment component (FAC) to revise the passenger fares every six months.
After presenting his maiden Rail Budget, Railway Minister Sadananda Gowda told reporters, ‘We will continue with FAC which was there in 2013-14 also. There will be a periodic hike once in six months. That was taking place earlier also. This will continue.’ Faced with major challenges like funds crunch and large number of incomplete projects, he said the government proposed to attract private and foreign investment to tide over the critical financial situation. Justifying the FDI proposal, Gowda said, ‘We need huge investment for running bullet trains. There was a ban on FDI on Railways. Now we would request Commerce Ministry to delete that clause so that there can be FDI in infrastructure development.’
Govt to expedite construction of 3 rail lines crucial for coal supplies
New Delhi:Â The government on Tuesday said it will expedite the construction of three critical rail lines to facilitate faster transportation of coal to power plants, thereby helping in bringing nearly 100 million tonnes of incremental traffic to Railways. The announcement comes at a time when the power plants across the country are facing fuel shortages.
‘Railways will speed up construction of critical coal connectivity lines in Tori-Shivpur-Kathautia Area (in North Karanpura, Jharkhand), Jharsuguda-Barpalli-Sardega (in IB Valley, Odisha) and Bhupdeopur-Raigarh-Mand Area (in Chhattisgarh),’ Railway Minister Sadananda Gowda said while presenting Railway Budget 2014-15.
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