AndhraNews.Net - Non-Budgetary initiatives to accelerate Railway Projects

New Delhi: June 7, 2004

Indian Railways have taken up several non-budgetary initiatives to accelerate the completion of its projects.

The State Governments have taken part in 15 projects like the suburban transport projects in Mumbai, Chennai, Hyderabad and Kolkata, new lines, gauge conversions and other rail projects costing Rs. 9,500 crores. Shared funding is to the extent of around Rs. 4,200 crores.

The cost of projects being undertaken on strategic considerations-Kolayat-Phalodi new line, Luni-Barmer-Munabao gauge conversion, Sakri-Nirmali and Saharsa-Forbesganj gauge conversion is now borne by the Ministry of Defence. The cost of these projects is Rs. 800 crores, out of which Rs. 715 crores is being contributed by the Ministry of Defence.

Public-Private participation in certain projects-Pipavav and Mundra Ports have been connected through these initiatives. Private funding including debt is around Rs. 400 crores. Joint venture with State Governments-Rail Infrastructure Development Company-Karnataka (K-RIDE) has been formed with the Government of Karnataka to implement the four identified projects through suitable funding mechanism. The projects are Hubli-Ankola new line costing Rs. 997 crores, Solapur-Gadag gauge conversion costing Rs. 276 crores, to be equally shared by the Railways and the Government of Karnataka, Hassan-Mangalore gauge conversion at a cost of Rs. 274 crores and Guntakal-Hospet doubling at Rs. 154 crores.

For Hassan-Mangalore gauge conversion, the project between Hassan-Kankanadi is being implemented through a separate Special Purpose Vehicle (SPV) called Hassan-Mangalore Rail Development Company (HMRDC) with participation by the Ministry of Railway, Government of Karnataka, K-RIDE and Strategic investors.

Kutch Railway Company has been formed for implementing Gandhidham-Palampur gauge conversion project in participation with the Government of Gujarat, Mundra and Kandla Ports. The project cost including financing charges and contingency is estimated at Rs. 453 crores. An equity base of Rs. 200 crore has been proposed for the company and the balance cost is to be funded through debt. The equity participation in the project is by the Ministry of Railways, Government of Gujarat, Kandla Port Trust and Gujarat Adani Port Ltd. (Mundra Port).

Project of Udhampur-Srinagar-Baramulla new line has been declared a national project and is being funded by the General Exchequer outside Railway's plan. The amount allocated over and above the gross budgetary support is Rs. 850 crores in the last two year. The estimate expenditure on the project is Rs. 5000 crores.

Press Release: PIB

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