Indian Railways will interact with the private industry and take further steps to attract investment under Public Private Partnership (PPP) through BOT and annuity route. Eight or ten capacity augmentation projects on congested routes will be identified for this purpose.
Shri Gowda said that Indian Railways has taken up port connectivity on priority through PPP mode of funding. Railways will facilitate connectivity to the new and upcoming ports through private participation.
Gowda also said to local newspapers that he aims to make India the largest freight carrier of the world.
The Minister said so far in principle approval has been granted for building rail connectivity to the Ports of Jaigarh, Dighi, Rewas, Hazira, Tuna, Dholera and Astranga under Participative Model Policy of Indian Railways, amounting to a total of over Rs4o billion (US$668 million).
India's railway network is the world's fourth-largest transport system. It has has suffered years of under-investment, it is slow and it is congested. The country aims to solve these problems by attracting investment using the PPP model.
According to sources, railways have the potential of adding about 1% to the country's GDP.