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MR - Rajesh Aggarwal
MR - Rajesh Aggarwal
MR - Rajesh Aggarwal
India’s urban population projected to grow to about 473 million in 2021 and
820 million by 2051 against only 285 million in 2001
Route Km
120000
Running Km
80000 Total Track Km
40000
0
1951
1961
2016
3
Investment Requirement in Railway Projects
Throw Forward : Rs. 5,84,000 Cr
New Line (NL) 18592 km Rs. 1,93,000 Cr
Double Line (DL) 21337 km Rs. 1,65,000 Cr
Gauge Conversion (GC) 8470 km Rs. 29,000 Cr
Metropolitan Transport Projects(MTP) 939 km Rs. 97,000 Cr
Station Redevelopment 400 Nos Rs. 1,00,000 Cr
• Implementation lagging due to land acquisition, clearances & lack of funds
• Additional demands from State Governments, Public Representative and
Industry for NL, GC, DL, MTP and Station redevelopment are further
aggravating the funding scenario and Project Backlog
• Requirement is felt for :-
Involving States in Project Planning, financing and Implementation
Speeding up the Development of Projects on State’s priority, WHY?
Benefit of Economic Development & Re-densification goes to State
Generating more financial resources through participation of
State, Financial Institutions & other Stakeholders
4
INFRASTRUCTURE FINANCING
Subordinate Debt
Lenders
Project
Association with Easier & timely implementation of project due to government backing
Government of India Clearance & approval process would be quicker and easier
Land to be acquired by State Government under the Railway Act
Tax benefits (like 80 I(a) etc.) given to infra projects resulting in higher returns
Need for Relaxation of rules for infra projects (For eg: DCCO deferment up to 4 years
infrastructure for infrastructure projects vs. 2 years for non infrastructure projects)
projects in India Presence of security facilitates funding by way of debt
Private investment in railways permitted up to 100% in specified sectors
PROJECT SPVs
Chhattisgarh West Chhattisgarh Central
Rail Corridor Ltd. Rail Corridor Ltd.
JVC
Mumbai Rail Vikas
Corporation
PROJECT SPVs
MUTP 3 MUTP3A
EQUITY TO 40:60
DEBT RATIO
JVC
Gujarat Rail Infrastructure
Development Corporation (GRIDE)
PROJECT SPVs
Bahuchara G RCL Other spv