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Railways Needs Rs 14 Lakh Cr to Modernize: Dinesh Trivedi

  • Railways will need Rs 14 lakh crore over the next 10 years if next-generation modernization is to take place, minister Dinesh Trivedi said on Thursday.This investment is essential for upgradation of the rail network, including automation of the signalling system, strengthening of track and procurement of modern rolling stock, the railway minister said."The time has come for the PMO, Planning Commission and Railways to decide on the future of the carrier. The present system has outlived its utility. We have to embark upon a new generation of rail services," Trivedi said.
  • Trivedi was hopeful that the investment will come from a combination of government support, the railways' internal resources and public-private-partnership.He expected a 200% hike in the Railways' plan expenditure, which is Rs 20,000 crore in current financial year.Linking the fortunes of the carrier with that of India's growth, the minister argued that if the railways are not modernized there was no way the country could hold on to its high GDP growth rate. The minister said he was bringing the Prime Minister and the planning commission on board with the needs of the Railways.
  • Trivedi said a slew of reforms was urgently needed, including a tariff regulatory body that would suggest train fares and freight rates, de-politicization of the railways for undertaking modernization and a national rail policy based on broad consensus.He also mooted the idea of expanding the Railway Board to a nine-member body, up from seven at present. "There should also be a member revenue and member safety in the board," he said.The minister wanted the proposed member (revenue) to focus on innovative ways of generating resources. "We must find out new revenue models," he said, giving the example of Japan's railways which generates 30% of its revenue from commercial exploitation of real estate.Trivedi said his main concern was to improve safety and after that embark on modernization of tracks, signaling system and rolling stock.He advocated e-tendering and e-auctioning as part of the modernization exercise.

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