Policies for Private Investment in Railways

A number of policies were announced during Eleventh Five Year Plan to encourage private investment in terminals and wagons. These include: Private Freight Terminal policy (PFT), Special Freight Train Operations (SFTO) policy, Automobile Freight Train Operators (AFTO) policy, Auto-hub-ancillary policy, Operation of Container Trains, R3i (Railways’ Infrastructure for Industry Initiative) and R2CI (Rail connectivity to coal and iron ore mines) policies to facilitate participation of private sector in the development of Railway Infrastructure.

While these policies will continue to be pursued during the Twelfth Five Year Plan, a revised policy for encouraging private participation in rail connectivity projects has been approved recently by the Union Cabinet.

Approval of 53 rakes have been given under Liberalized Wagon Investment Scheme, 3 rakes approval have been given for Special Freight Train Operators Scheme, notification for 8 Private Freight Terminal have been issued, 17 private container train operators have now been given permission for operation of container trains.

This information was given by the Minister of State for Railways Shri Adhir Ranjan Chowdhury in written reply to a question in Lok Sabha today.