Railways Infra Will Never Be Privatised, Assets to Be Monetised: Piyush Goyal

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The government Friday said in Rajya Sabha that railways infrastructure will never be privatised but it plans to monetise its assets to generate resources to boost growth. Railways Minister Piyush Goyal also said that passenger train operations taken up through Public Private Partnership (PPP) is targeted to bring a total investment of about Rs 30,000 crore.

The Ministry of Railways plans to monetise assets including through Eastern and Western Dedicated Freight Corridors after commissioning, induction of 150 modern rakes through PPP, station redevelopment through PPP, railway land parcels, multi-functional complexes (MFC), railway colonies, hill railways and stadiums, Goyal said during the Question Hour.

“Asset monetisation would help in generating more resources towards infrastructure creation. Passenger train operations taken up through Public Private Partnership (PPP) is targeted to bring a total investment of about ? 30,000 crore,” Goyal said.

Replying to a supplementary asked by Jairam Ramesh of the Congress, Goyal said he felt the Opposition member was not able to understand the difference between privatisation and monetisation. “When you privatise, you sell off the assets permanently and it no more remains a part of the government ownership. In the railways, the plan to is monetise in terms of how it will generate resources, further investment and growth. The infrastructure of Indian Railways will never be privatised,” Goyal said.

The Railways Minister said dedicated freight corridors are a separate corporate entity and the railways is supporting them. “The Railways is supporting but is not the owner of tracks that the DFC is laying If we raise funds by leasing them, giving them out to private sector to use in the interim period we are doing a service to the nation,” the minister said. The Ministry of Railways is committed towards enhancing the pace of infrastructure development, which is vital for the national economy as a whole, he said.

The railways would always be a key economic driver in the strategy of investment-led economic growth, he said. The minister said assets monetisation involves various transaction processes, and the investment expected depends on the outcome of bidding process open to public and private sectors. “Therefore, the actual investment expected from private and public sectors cannot be ascertained as of now,” he added.

Goyal said modern train is the need of the day, and the railways has got historic Rs 2.15 lakh crore allotment under Prime Minister Narendra Modi. If a road is built, everyone uses it, similarly if a pipeline is built by GAIL and they only use it, it will be misused, he said. “Similarly, if new rail tracks are laid and private people are invited and encouraged to operate there, it will be run by locopilots, there will be caterers, so it will generate employment and not lead to job losses,” he said.

In reply to a supplementary raised by the leader of the opposition in the Upper House Mallikarjun Kharge about a proposal to merge three divisions of Gulbarga in Karnataka, Goyal said the Railways Board did not find it feasible. He said proposals made by Zonal Managers are sent to the Board for a holistic view with an all-India perspective. He, however, added that he will discuss the issue with Kharge separately.

In a reply to another supplementary, he said for seven routes dedicated to semi-high speed passenger corridors, the government is talking to state governments and added that there has been good response from the Uttar Pradesh government which is cooperating on the Delhi-Varanasi route, mostly elevated along the highways. He said under PM Modi’s leadership instead of just haphazard announcements, which he alleged used to be the case earlier, committed plans are being made and it is being ensured that the rail infra is augmented in the entire country instead of just a few places.

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Railways’ ‘privatisation’: Opposition comes down on government

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It would only benefit corporates and push it to brink like Air India, Indian Airlines

Opposition parties severely criticised the Narendra Modi government for concentrating their efforts in ‘privatising’ the Railways in the last seven years even as Railway Minister Piyush Goyal reiterated that none of the assets are being sold to the private players and the national carrier will not be privatised.

The Opposition leaders said privatisation of various railway infrastructure and services would only benefit corporates and loss of revenue for the railways pushing it to the brink like the Air India and the Indian Airlines. It would also mean exponential rise in fares for common men.

At the conclusion of the debate on Demand For Grants for Railways, Mr. Goyal said the government has a long-term vision and does not make announcements for electoral benefits. If the State governments were to cooperate, he said the experience of travelling on the Railways can be better than flying.

“When a road is constructed, who owns the road? The government. But on that road all sorts of cars ply include private ones. Similarly on the railway tracks which are owned by the Railways, if a few private players want to run modern trains providing a comfortable journey to the passengers what is wrong in it,” Mr. Goyal said. The private equity, he said, is only being used to bring in modern amenities and technology. “Nobody needs to be worried. The Railways is the government’s asset. Nobody is privatising it and no one can do it.”

Congress leader Naranbhai J Rathwa said in the last seven years, instead of augmenting the rail infrastructure, the government’s emphasis has been carting out various lines and services to corporate houses. “The Railways should remain with the state, because the profit driven private sector will simply not run trains on unprofitable routes and will alarmingly increase the ticket fare to increase their profit margins,” Mr. Rathwa said.

DMK leader P. Wilson said privatisation does not always mean improvement in services or efficiency. The catering services were privatised almost two decades back yet there are complaints from passengers. “Though the Railway Minister claims that railways will not be privatised, when activities of railways are privatised, the income of railways will deplete, resulting in financial crisis which eventually will become like Air India and Indian Airlines.”

RJD MP Manoj K Jha said the government should resist the temptation to offer assets (public or railways) to capitalists through the monetisation of these assets. He said history will “judge you [the government] by the benefits provided by you to commoners and by benefits provided to corporates”.

Shiv Sena MP Anil Desai said the government, instead of constructing the bullet train between Mumbai-Ahmedabad, should have focused on improving the existing infrastructure. Mr. Goyal, in his concluding speech, hit out at the Maharashtra government for delaying land acquisition for the project.

Aam Aadmi Party member Sanjay Singh quoted the example of the Habibganj railway station in Uttar Pradesh which was recently redeveloped by a private entity, where the cost of parking a two-wheeler is ₹50 per hour. Responding to this, Mr. Goyal said more than ₹100 crore was spent in converting this station into a world class one. “The private entity here is only charging the fee for the service they provide,” he said.

Even BJP’s own members and allies flagged many problems. JD(U) leader Ram Nath Thakur rued that despite many letters to Mr. Goyal, a train from Samastipur connecting Delhi has not been run. BJP MP Neeraj Shekhar said the government must quell the rumours that to reduce the travel time, many stations will be skipped entirely.

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