The introduction of Public-Private Partnership in Railways can lead to the kind of reforms that can help transform India and make it a global leader. Explain (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
KEY POINTS
· Spanning an extraordinary 68,000 route km, the Indian Railways is truly the pulse of the nation. It employs over 1.2 mn people and generates approximately Rs 2 lakh cr annually—a major contributor to jobs, GDP, and mobility. In fact, efficient and optimal use of the railways could further add up to 1% to GDP.
· However, to undertake an operation of such gargantuan proportions, India must involve the best resources via PPP to bring in the latest technology, leading practices, and efficiencies.
· The recent opening of PPP opportunities by Indian Railways is a clear indicator that a reform-driven agenda is being implemented. It is a controlled foray into PPP, where market forces will help enhance the quality of services and in-transit experience, without the government relinquishing control over public safety and security.
· Journey time will be, within a range of 10%, like the fastest Indian Railways train on that path. Proposed routes include Delhi–Mumbai, Delhi–Chennai, Mumbai–Chennai, and others. This is a follow up of last year’s launch of the IRCTC-run Tejas Express, and the Kashi Mahakal Express.
· The PPP investment is expected to be in the range of Rs 30,000 cr in a Make in Indialed growth strategy. Encouraging domestic manufacturing of rolling stock, these projects will also create direct and indirect employment.
· Another key initiative is the redevelopment of railway stations through a PPP model, remaining cost-neutral to Indian Railways. Initially, 50 stations will be bid out and funded through land monetisation as well as user charges.
· The modernisation and redevelopment of stations will be conducted primarily through Indian Railway Stations Development Corporation Limited, Rail Land Development Authority and other central government entities.
· The PPP basis is under the Design, Build, Finance, Operate and Transfer model. The land lease period has increased to 99 years for residential development around the railway stations as part of the project, and commercial development to 60 years.
· To add to the viability of this project, all clearances will be single-window, and plans will be approved in consultation with urban local bodies and authorities to ensure a collaborative exercise.
