India’s Uion railway minister Suresh Prabhu excludes the privatization of national railway company. “Railways will continue to be owned by government of India, managed by government of India. The concept of privatization gives confusing signals and envisages the possibilities of ownership transfer of an enterprise to a different entity or management which was not possible in railways,” Prabhu.
Despite the bad situation of the company and the needed private capital, Indian Railways will continue to be owned only by Government of India.
For the newxt years, India will invest huge amount for the development of railway projects. Prabhu said there is no lack of finance for the Railways now, courtesy the newer fund mobilisation ways devised by his Ministry and reiterated that a whopping Rs 8.50 trillion (USD 135 billion) will be invested over the next few years.
In addition, India and Maharashtra Government will set up a new company that will be incharge with rail infrastructure projects, Railway Minister Suresh Prabhu said. “We will create a company with the Maharashtra Government, which will develop rail lines in different parts of the State,” Prabhu said.
For this project, Railway Ministry and Maharashtra Government will sign an agreement to develop the rail network.
“The agreement will be limited to Maharashtra,” he said, adding, the improved rail connectivity will help bridge development gap between regions and enlisted possible routes which may be taken up.