Suresh Prabhu's 'Swiss' plan: How Railway Ministry plans to modernise 400 stations

NEW DELHI: Railway minister Suresh Prabhu on Thursday lauded the Cabinet decision to modernise 400 stations through open bids. "E-bidding process leaves no discretion...it will be a very transparent method. All bids will be done only through web-based bidding process, it will see evaluation by independent experts," the minister tweeted.

The Cabinet cleared the redevelopment of the railway stations on 'as is where is' basis through open invitation from interested parties with their designs and business ideas, including permitting commercial development of real estate by the zonal Railways.

These stations shall be offered for redevelopment under the Swiss Challenge method, which is by inviting open bids from interested parties. These stations are to be developed by leveraging real estate development of land and air space in and around the stations.

"We are working on all of my Budget announcements, several of them have been implemented fully," Prabhu said.

Stn development very transparent method.All bids only through web based bidding process only.Evaluation by independent experts.Very open

— Suresh Prabhu (@sureshpprabhu) July 16, 2015

Lauding PM Narendra Modi's push to create railways as a growth centre, Prabhu said: "This move is a very big step towards passenger service, modernisation and job creation."

These stations are generally located in metros, major cities, pilgrimage centres and important tourist destinations.

The decision, according to finance minister Arun Jaitley, will encourage innovative ideas from interested parties at no cost to the Railways.

Prabhu is expecting a whopping investment of $120 billion in next five years, which will boost the cash-strapped national transporter.

Railways needs massive investment for upgradation and expansion of its network, Prabhu said.

Budget announcement fulfilled.Stn dev with complete transparency with http://t.co/jx0EuR3rss class amenities,shopping etc.Cities get icons

— Suresh Prabhu (@sureshpprabhu) July 16, 2015

"There has been no investment in the railways for the last 20-25 years... There will be an investment of $120 billion in the next five years to catch up with the backlog," he said.

Requiring huge resources, the government has already decided to allow FDI in certain segments of the railways, like coach manufacturing, station development, suburban rail and high-speed network.

"We have big challenges and we have to address them," the minister said.