Impact /effect of Government Policies : Indian Railway

FDI This
100% policy
FDI supersedes
is approved theforR3iautomatic
and R2CI policies
routinenotified
permitted earlierto all projects
The policy provides for supplementing governments investment in rail infrastructure
Toprojects
increasebyitsprivate
share in capital flows transportation. The scheme provides logistic service
automobiles
Participative models for rail providers
The policy and road transporters
contains the following an opportunity to introduce their
models: non-government own special
railway; JV withwagons
equityto
run on the railways networkcapacity
and availaugmentation
of freight rebates in return. The requirements for the
connectivity and capacity participation
The policy aims by railways;
to attract private sector participation through in funding by customers;
rail connectivity projects to
augmented projects scheme
capacity are laid down as under:
augmentation annuity capacity
model applicability; and BOT
create additional rail transport
Companies with minimum net worth of US$ 3.7 million or annual turnover of US$ 5.5
InThe
FY17, Port-Rail
policy allows Connectivity
for 4 models: Projects worth more than US$ 2.97 approved by The
million are eligible to participate in this scheme
R3i Policy Ministry
(a) Costof Railways
Sharing-Freight Rebate
A registration fee of US$ 0.9 million is required to be paid to the Railway Ministry on
approval
44new projects
(b) Full worth US$ 13.8
Contribution- Apportioned Earnings
as AFTOs billion is likely to be implemented in FY17
Connectivity
(c) Special
Companies aretorequired
the major
Purpose ports (SPV)
Vehicle
to introducethrough
at and
leastPPP funding
3 rakes and make them operational within 6
Public Private Partnership months
For (d) from
2017-18,
Approval the
has
Private the
beencommissioning
total
Line capital
granted andfor of the 1stamounting
development
7 ports rake
expenditure to of Railways
US$ has been pegged at Rs
0.7 billion
Automobile Freight Train 131,000 crore (US$would
20.44 be billion) . Thisfrom
includes Rsto55,000 crore (US$ 8.58 billion) provided by the
Operator Scheme (2013)
(PPP) Government.
The freight
Development rates of the major notified
stations to time
equip time for
them with specific stock
international to be moved
level of by
AFTOs
amenities and services
For This
The passenger
newrebate
freight safety,
policy a Rashtriya
was
would Railto
initiated Sanraksha
be incorporated improve Kosh
in the will
railfreightberates
created
connectivity with
to a corpus
coal
specified and
for of Rsore
iron
transport 1 lakh
ofmines
crore (US$ 15.61 billion) over a period of 5 years.
The policy offers the developer involved in the construction of the line to levy a
automobiles
Railway lines of 3,500 kms will be commissioned in 2017-18.
surcharge
Special wagons onwould
the freight over aand
be designed period of 1025
developed years
by Research, Design and Standards
R2CI Policy
Railway Budget 201718 It is proposed to feed about 7,000 stations with solar power in the medium term.
Organization (RDSO) for induction by 3rdCostpartyand logistics providersThe and road transporters
Anew TheMetro
policyRail hasActtwo
willmodels:
be enacted Capital
by rationalizing SPVexisting
the Models. laws. ThisCapital Cost Model
will facilitate greater is
private
Each rake
relevant is when
to havethere
participation a capacity
and are 2 to
investment carry
players, 318 small and
whereas
in construction cars. The Model
rake should
theoperation.
SPV be tested
is intended forbya RDSO
large
number
AMaruti
new Suzuki,
Metro of players
Railthe railways
Policy will bebiggest
announced automotive
with focus client, is the only
on innovative automaker
models to have placed
of implementation and
orders forasrakes
financing, well under this schemeand
as standardization in 2013
indigenization of hardware and software.
By
By2019,
2020,all
speed andofpunctuality
coaches of trains
Indian Railways is expected
will be fitted withto
bioimprove significantly
toilets. In the next as the tracks
3 years, the
would be decongested after the completion of freight corridors
throughput is proposed to be enhanced by 10 per cent. 500 stations will be made differently
abled friendly by providing lifts and escalators