Rail Budget 2014: Private companies skeptical of investing in Indian Railways

NEW DELHI: The Modi government on Tuesday announced a series of measures to boost private participation in railways but industry remained skeptical given the state transporter's track record on joining hands with external agencies.

Sadananda Gowda acknowledged that in the past the transporter had failed to raise resources through the PPP route but made it clear that the government was not giving it up just yet. He went on to say that a bulk of the future projects will be financed through the route, including the high-speed rail project that requires investment of around Rs 60,000 crore.

Apart from solar projects, several other initiatives including modernization of stations and construction of freight terminals will involve private sector participation.

In the past, several initiatives which involved private participation, such as locomotive factories in Bihar, have run into trouble as the railways bureaucracy has refused to give up control. Similarly, the entry of private players in the container business faced hurdles. But industry players pointed out that the government needs to undertake housekeeping before the PPP initiatives can take off.