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The Union Railway Minister Suresh Prabhu on Monday called for tapping overseas pension funds to raise financial resources for the Railways.
Apart from the domestic pension fund, foreign pension funds could be tapped to get cheaper loans for infrastructure and network expansion, Prabhu said.
More investments needed “We will invite foreign pension funds to invest in the Indian Railways as loans. We have to bring in investments from both within and outside the country,” he said at the 15th National seminar on ‘PPP and FDI in Indian Railways’ here.
Countries such as Australia and Canada have utilised the pension fund route to develop their economies.
The Minister said private investors were willing to invest in railway projects, expecting “some returns, not large returns”. “Investors must benefit reasonably (while investing in railway projects), but should not expect a windfall,” he added.
‘No privatisation’ Prabhu also sought to allay apprehensions of some union leaders and employees of the Railways that inviting FDI and encouraging PPP model would tantamount to privatising the organisation.
“The Railways will never be privatised. It will continue to be owned by the Government of India. The train engine and driving wheel will be in our hands, only some bogies can be given out (for FDI),” he said.
Prabhu said expanding the railway infrastructure and improving efficiency through PPP and FDI was in the interest of the organisation and its employees. “We want private capital, but not privatisation,” he added.
The Ministry is also keen to form special purpose vehicles with all State governments to take up specific projects such as gauge conversion, electrification and doubling of tracks. He had talks with the Andhra Pradesh and Telangana Chief Ministers in this regard.
DP Pande, Member (Traffic), Railway Board and President of Centre for Transport Research and Management, said an investment of ₹1.18 lakh crore was needed for taking up the 359 major sanctioned railway projects.
The Minister also flagged off the new Secunderabad to Visakhapatnam weekly AC express and Nanded to Aurangabad weekly express.
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