With the aim of bringing transparency, all contracts in the Indian Railways would be on e-tendering by the end of the year.
"The work is underway to revamp PPP (public-private partnership) cell within the ministry of railways with the objective of streamlining processes to enhance transparency. All contracts would be based on e-tendering by end of the year," railway minister Suresh Prabhu said at a PPP summit organised by the Confederation of Indian Industry (CII) in New Delhi on Friday.
The railway ministry said e-procurement process has already been started in the public transporter and all contracts would be materialised through e-tendering system soon.
Strongly pitching for private investment, Prabhu said, "There is no other alternative than to get private sector participation in the country. Balance needs to be achieved between profit and public interest objective."
Referring to the Madhepura and Marhora rail projects, Prabhu said: "The largest FDI (foreign direct investment) project worth Rs40,000 crore is in the railway sector to set up diesel and electric locomotive factories. These state-of-the-art manufacturing facilities will create an eco-system with spin-off benefits, which will not only create jobs in the manufacturing facilities but will also help in developing ancillary units."
Elaborating on the scope of private investment in railways, he said, "There is a proposal to redevelop about 400 railway stations on PPP mode. It is in advance stage and are structured in most viable manner that would benefit all stakeholders."
According to the Railways' plan, 400 stations will be redeveloped with private participation enhancing quality of passenger amenities at rail premises.
Referring to Dedicated Freight Corridor project, he said work on DFC project worth Rs80,000 crore is being implemented at a satisfactory pace.
Prabhu also mentioned about the joint venture plan envisaged with various state governments to execute rail projects in the respective states.
The Railways has signed projects worth Rs3,00,000 crore in joint ventures with states, he said.
In the area of regulatory framework for the rail sector, he said the ministry would soon invite comments from stakeholders.