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Public-Private ties to boost rail projects?

In order to boost implementation of various projects, railway minister Mamata Bannerjee has proposed a number of schemes under public-private partnership (PPP).

Citi India economist Rohini Malkani says the the move could expedite the implementation of projects. She said that special emphasis on PPP and the proposal to set up a special task force to clear investment proposals within 100 days might take care of the administrative and procedural delays. The major projects under PPP are diesel multiple unit factory in Sankrail, refrigerated container factory at Budge Budge, dedicated freight corridor between Sonnagar-Dankuni, six high-speed passenger rail corridor, rail-axle factory in Jalpaiguri, mid-life rehabilitation workshop for old coaches at Anara and multilevel parking complexes at stations in large cities.

Do you think the Rail Budget 2010, will boost rail infrastructure projects?.

Initiated by Sri maheswari on 03 Mar, 2010 | Total Comments: (26)
 
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  • Though Indian Railway is doing a good job, private participation will hasten the process and speedy completion of infrastructure. Posted by Sivakumar.B, Chief Accountant at STS,Sultanate of Oman | 08 Mar, 2010
  • This is really a very nice step taken by the railway minister.Involving the private companies in public works will definitely improve the quality of the service provided the project is properly implemented. Posted by Prof.Dr.Tabrez Ahmad, Professor of IPR & Internet Law at KIIT Law School, KIIT University | 07 Mar, 2010
  • Currently there is an acute need for Better Logistics Services. Many industries are forced to go in for AIR Cargo when the need may be less than this. The right choice is RAIL. I strongly feel that established Express cargo cos and join hands with Railways to provide the serivce which the customer requires. Posted by Kumar M C, Manager at Nissan Motor India | 07 Mar, 2010
  • It is true that PPP is tough because Govt/PSU has to follow CVC guidelines and to fulfill statutory requirements strictly. Private sectors are more cost conscious. To work in collaboration is not very difficult some obstacle is certainly expected which can be sorted out. Becaus EVERY PROBLEM HAS A SOLUTION. Posted by Upendra Nath, Sr. DGM at Heavy Engineering Corporation Limited | 06 Mar, 2010
  • I am sure there should be some improvement. But, will Mamata Banerjee be able to deliver the results that have been given by Laloo Prasad Yadav is a difficult question. However if this budget improves the rail network in the country especially in those areas that are not well connected then on can consider this budget to be a success. The public private partnership (PPP) is no doubt a good concept but, is not as simple to implement. Hence, there are a number of slips between the lip and the cup. The implementation of the PPP is a challenging task. Posted by Manoj Joshi, Manager Marketing at Lanco Industries Limited | 05 Mar, 2010
  • YES, ONLY PUBLIC PRIVATE PARTNERSHIP CAN BOOST RAIL INFRASTRUCTURE. Posted by Alok Sinha, MATERIALS MANAGER at Coal India Limited | 04 Mar, 2010
  • Yes, PPP is an appropriate decision taken by Hon. Railway Minister.
    In my opinion major bottleneck with govt organisation is decision making. which delays a project. Undoutabely the quality of PSU is up very good. Private sector are more cost efficent. PPP will certainly have a check on cost, quality and time for comopletion of project Posted by Upendra Nath, Sr. DGM at Heavy Engineering Corporation Limited | 04 Mar, 2010
  • Yes, PPP is an appropriate decision taken by Hon. Railway Minister.
    In my opinion major bottleneck with govt organisation is decision making. which delays a project. Undoutabely the quality of PSU is up very good. Private sector are more cost efficent. PPP will certainly have a check on cost, quality and time for comopletion of project Posted by Upendra Nath, Sr. DGM at Heavy Engineering Corporation Limited | 04 Mar, 2010
  • Yes, PPP will be most appropriate decision taken by Miss Mamata Benerjee during Railway Budget 2010, because, as we know basically Govt. Organisations are more studiously follows the central decision making process with fixed, & conditional guidelines laid by the board for operations and there is quality serviceability based profitability criterion by increasing the mileage of operations. But, Private Operations are always based on Profitability Criterion with increased Qualitative Services to maintain the consistency in operations and also increase in profitability with minimal cost approach to increase usage of Services consistently as Private Sector is always a highly competitive world. Hence, to create the demand for Railway ...See More Posted by UDAYA BHAASKAR BULUSU, Chief Executive at McCoy Group | 03 Mar, 2010
  • Yes, PPP mode for the implementation of the projects on the ground, is the fastest to get quick results. Undoubtedly, Miss Banerjee has the WB assembly elections in mind and wants to gain mileage over CPI(M) at the hustings. So be it! However the best part of the bargain is that the people of WB will be the ultimate beneficiaries and what they lost in Singur and Nandigram, will be regained n due course.
    You have mentioned the projects in WB only but the same logic applies elsewhere too wherever such projects have been sanctioned in the Rail budget. Posted by Kottakki Nehru Patnaik, Divisional Railway Manager(Mechanical)- Retired at Indian Railways | 03 Mar, 2010
  • RB10 is more of intent to develop infrastructure through the PPP model, while successful implementation would depends upon a lot of factors including a favorable external environment to support and integrate the PPP project.
    Privatization of goods carriage by private operators running their own train has to face lot of infrastructure bottlenecks.
    Optimism exists in projects which are ripe with demand and other need factors.
    Regards
    Surendra Posted by Surendra Sharma, Shipping and logistics at Consultant | 03 Mar, 2010
  • PPP is also benefiting for more and more sectors, and benefiting for the over all sector and human upliftment also. Posted by Sarmistha D, CEO at Shuvam Consultancies & Services Pvt. Ltd. | 03 Mar, 2010
  • I appreciate Mr. Despande,s concern, which has to be addressed with sincerity and honesty. Posted by Rajiev Kumar Maheshwari, Dy. Managaer-Supply Chain Management at Dr. Reddys Laboratories Ltd. | 03 Mar, 2010
  • Yes Rail Budget 2010 has taken one step further & it need transperent way of dealing with private partnerships, else it will be a mess.The infrastructure will naturaly get boost, but one thing we have to keep in mind that in this country there is always opposition for the sake of opposition, that will take little more time span & next rail Minister should also follow the same steps, he should not wind it up. Posted by Chandraprakash Deshpande, General Manager - Business Development at Pushkaraj Engineering Enterprises Private Limited | 03 Mar, 2010
  • I believe that Mr. Ashok and Mr. Venkat is looking at one side of the coin. Let us nderstand one concept very clearly that "Quality never comes cheaper" and on the same line as Mr. Venkat expressed that common man is paying more than what he is availing, let us choose between cheap services and quality services. Definately this step will increase the servicability as no private enterprenure will carry on the business on term of liabilities and competition in this field will definately give the better quality of service and safety to the end user, whether it is passenger or commercial goods. Posted by Rajiev Kumar Maheshwari, Dy. Managaer-Supply Chain Management at Dr. Reddys Laboratories Ltd. | 03 Mar, 2010
  • I agree with Venkat about Mumbai's issue. Mumbai's issues needs to be dealt indpendently considering various aspect. Posted by Ashok Punde, Managing Partner at SuSaS Consultech | 03 Mar, 2010
  • Yes, I have a positive view point on this subject as it has always been observed that if any public sector undertaking goes in to the priveate sector, it has given the profits better than earlier. PPP can boost up the speed of projects and will create the new avenues for employments and better severicability. Posted by Rajiev Kumar Maheshwari, Dy. Managaer-Supply Chain Management at Dr. Reddys Laboratories Ltd. | 03 Mar, 2010
  • Yes.definetly. In other developing countries and western countries PPP was a very successive model. In ADA report also it suggests to implement the PPP model. If task force as framed by Board should take bold initiative to clear investment proposal within the target date to reap the maximum benefit. Posted by g mohan, executive at Indian Railways | 03 Mar, 2010
  • PPP would help bring in healthy competition and would also reduce monopoly of the existing players. It would also reduce the time line and cost over run due to the limitation of the existing infrastructure. Hence, infrastructure would certainly get boost if every thing gets implemented in the set time frame. Posted by Suresh Gurule, Vice President Infrastructure and Administration at Future Capital Holdings Ltd | 03 Mar, 2010
  • I most humbly feel that, the government has conceded its inability to handle the infrastructural demands on its own-To bring in private people will only amount to more burden on the common man-He already has been paying a heavy price in the name of facilities(!!!!) he is availing(!!!!!!!!!!) Posted by Venkatraman Iyer, Proprietor at Magnum enterprises | 03 Mar, 2010
  • These days,the railway budgets seem to have found the knack of tactfully piercing the public wounds-the way is to announce the addition of new trains(some favoured to the railway minister's state or hometown and others just as a pacification(!!!!-My comment may not go well with many,but taking a look, one will find that there is some much increase in the number of trains for certain routes,while many others continue to get neglected at the railway ministries hand.Also,without any improvements in the basic infrastructure,the wisdom of increasing the number of trains is to be questioned.
    As a person who has resided in Mumbai for most part of my life till date,I fail to understand, how the railway railway ministry can put on ...See More Posted by Venkatraman Iyer, Proprietor at Magnum enterprises | 03 Mar, 2010
  • Yes certainly PPP will work in fast developing country like ours. subject to fast govt.decisions and fair competitive enterprises. Posted by Dinesh Pande, Manager Stores at Greaves Cotton Ltd | 03 Mar, 2010
  • Yes PPP will work in various areas, provided everybody takes such moves postively. There should not be any political involvement and decision makeing from Govt.should be fast. Posted by Ashok Punde, Managing Partner at SuSaS Consultech | 03 Mar, 2010
  • Our country is badly in need of PPP projects.
    The best example is the Shamshabad international airport at Hyderabad.
    Something is better than nothing. Let us welcome the proposal. Posted by A.Krishna Murty, Engineer-in -Chief ( Retd) at Irrigatiion Dept, Govt of A.P. | 03 Mar, 2010
  • Well to add to this.. yes i think the PPP will work. I have had several discussions with authorities who are in talks with private enterprises to finance refrigerated trains, dedicated freight corridors under BOT schemes as well. The only thing that awaits the implementation is the funds and the people to execute all these projects. Once implemented these entities must be profitable, effecient and productive as well. Posted by Shane Oliver, Partner at Mercury Shipping & Projects | 03 Mar, 2010
  • Definitely,PPP will fetch revenue also in addtion to proper utilisation of railways land. Posted by SRINIVAS KONA, EXCECUTIVE at GMR Hyderabad International Airport | 03 Mar, 2010

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