Suresh Prabhu to hold closed door meeting at BSE with financial market players

MUMBAI: Railway minister Suresh Prabhu will hold a closed door meeting at the BSE on Friday evening with representatives of financial markets. Prabhu, who is expecting a whopping investment of $120 billion in next five years for railways, may seek discussion on innovating ways to finance the cash-strapped national transporter.

Leading investment bankers, stock brokers and economists have been invited for the meeting. Media persons will not be allowed, two people attending the event told ET.

Indian Railways has not got any big investment for the in last 20-25 years but huge fund flow is expected as government has allowed FDI in certain segments like coach manufacturing, station development, suburban rail and high-speed network. Key area where huge money could be mobilised by government is Prabhu’s idea to modernisation of 400 railway stations through open bids. This could see huge corporate interest.

A study of country’s major railway stations like Sealdah and Howrah show that thousands of crores of rupees flow via small businesses on railway platforms. Most of this money is unaccounted for and the government gets no share of it. Also, many stall operators and book sellers of major railway stations have been getting the government contract continuously for many years. The railway minister now plans to change such norms and raise funds through PPP route.

"Prabhu mainly wants to assess the investor sentiment and psyche to know how effectively the investments could flow and what are the various models that should be followed," said a banker who has been invited for the meet.