BANGALORE: As the railway projects in the state are getting delayed though the state government is funding more than 50 per cent of the project costs without getting anything in return, the government is mulling over the possibility of undertaking the railway projects on public private partnership (PPP) basis to ensure that the priority projects are completed in time to earn returns. A highly placed official on the condition of anonymity said that the state government is holding deliberations over investing in the railway projects after a private consultant, Vivek Singh of Invest Capital Advisers, suggested it in his presentation that highlighted the various benefits of such investments. At present, the state government is funding 50 per cent of the project costs of 12 projects and two thirds of the project cost for Bangalore - Mysore doubling project, besides providing the land free of cost to the railways. If the land cost is taken into consideration, the state government is funding around 70 per cent of the project costs without getting anything in return and yet the railways is taking more than seven to ten years to complete these projects which is due to the delay in releasing the corresponding funds by the railway board leading to frequent cost escalations. Therefore, it is advisable to invest on the railway projects completely as it would ensure that the important projects are completed at the earliest .The government is mulling over investing two thirds of the project cost for Bijapur - Shahabad railway line estimated to cost Rs. 1,200 crore in the next five years as a private investor in return for a share in the profits.
Comments
0 comment