PPP model proposed by centre for suburban railway project

PPP model proposed by centre for suburban railway project
Highlights

As per sources, the PPP model may speed up the project, but it is mostly dependent on the participation of private firms.

BENGALURU: The Centre has proposed a public private partnership (PPP) model, over the Rs 22,242-crore Bengaluru suburban rail project, which could further be delaying the process. As the railways and the state will have to fish for private players and revise the detailed project report (DPR) which may take another six months to one year.

The Karnataka Rail Infrastructure Development Corporation (K-RIDE), in a letter to the railway board on April 10 had said: "...Considering revised financials with viability gap fund (VGF) and with revised contours, possibility for individual point-to-point projects through PPP should be explored."

Indicating that fares could be higher, the letter read: "Fare box revenue shall be planned in a manner that it would meet operations and maintenance costs duly comparing fares prevalent in other modes of transport."

As per sources, the PPP model may speed up the project, but it is mostly dependent on the participation of private firms.

A letter from the office of the Prime Minister had cited, as the railway board has asked K-RIDE to restructure the proposal and revise the DPR prepared by RITES. "Suburban lines should not compete with Metro. They should be planned to bring people from/to suburban areas of the city and for its development as nodal centres," the board said.

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