Railways to set up firms to develop stations (Lead)

March 14th, 2012 - 5:36 pm ICT by IANS  

New Delhi, March 14 (IANS) The responsibility of developing and maintaining thousands of railway stations and goods sheds across India will be entrusted to two new companies under the public private partnership (PPP) route, Railway Minister Dinesh Trivedi said Wednesday.

“I have set up a separate organisation namely Indian Railway Station Development Corp, which will redevelop the stations and maintain them on the pattern of airports,” Trivedi told the Lok Sabha while presenting his ministry’s budget for the next fiscal.

According to Trivedi, the organisation will utilise suitable revenue models to maintain the stations under PPP model and has great potential of proving employment.

“The SPV (special purpose vehicle) will draw upon the success stories the world over, adopt a suitable revenue model and target redevelopment of 100 stations in the next five years.

“Being funded through PPP route, these efforts will be cost neutral for Indian Railways. It has been estimated that development of major stations in metro cities has the potential to create employment for about 50,000 persons,” he said.

The minister proposed to create a logistics corporation for upgradation and management of railway’s goods sheds for providing last mile servicing for freight traffic.

“I propose to create a logistics corporation for development and management of existing railway goods sheds and multi-modal logistics parks.”

The corporation would aim to provide total logistics solutions to rail-users coupled with low operating costs.

The Indian Railways, which runs the third largest railroad network in the world, has around 7,083 stations on 64,000 km route, with 12,000 passenger and 7,000 freight trains.

It ferries 23 million travellers and 2.65 million tonnes of goods daily.

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