The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that Indian Railways will need more than $280 billion (14 lakh crore) to provide an efficient and extensive network in the country over the next 10 years.
The body said that even after modernising its current network of 64,000km there will still be ‘vast possibilities of expansion’.
The body also said that developing managerial skills in the private sector will bring greater value to the end user of the rail transportation.
Discussing the importance of transport infrastructure, ASSOCHAM secretary general, D.S. Rawat said:
“Rail, road, ports and warehouses holds the key to economic success of a country. Public Private Partnership (PPP) projects can set up special purpose vehicles for manufacturing of locomotives, coaches and wagons.
“Indian Railways also need to diversify beyond its major business of bulk transfer, strengthen its competitiveness and develop partnership with different stakeholders to provide inter-modal logistics,” he added.
In 1947, the Indian Railways network was 53,596 kilometres, and after 65 years, it has only increased by over 10,000 km to 64,015 km.
Today, the fastest train in the country can only travel up to 130 km per hour as the tracks are not designed for or capable of travelling beyond that speed.
China will be investing heavily in transport infrastructure in the next three years, reportedly up to $300 bn in modernising and expanding their rail network.
As the economy is growing at the rate of 8% per annum, Indian Railways ‘needs to catch up with developing dedicated freight corridors, high speed rail corridors, world-class railway stations and multi-modal logistics parks’, ASSOCHAM stressed.
Being the fourth largest network in the world, Indian Railways’ annual budget is pegged at $7 billion (Rs 60,000 crore) and it employs more than 1.4 million people.
