Business

PPP Model for Development of Railways

PPP Model for Development of Railways
PPP Model for Development of Railways
For encouraging PPP (Public Private Partnership) on Railways, a Policy on Participative models for rail connectivity and capacity augmentation was issued in December 2012. Model Concession Agreements for Non-Government line model, Joint Venture, Build Operate and Transfer (BOT) and Customer funded models have been issued. Till now under different PPP models, 9 projects have been implemented, 13 projects have been approved for implementation, besides 6 projects which have been given ‘in principle’ approval.

The Concession Agreements provide for Conciliation, Arbitration and Adjudication for resolving disputes between Government and partners.

Projects under PPP model are undertaken on the basis of operational requirement, financial viability, bankability and interest of stakeholders. Such projects are not undertaken based on socio-economic development of a particular region.

This information was given Minister of State in Ministry of Railways Shri Manoj Sinha in a reply to a question in Rajya Sabha Yesterday.

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