New Delhi: The government on Thursday approved a policy framework for private participation in rail connectivity and capacity augmentation of projects, besides addressing the first and last connectivity for entire freight commodity.
The policy framework and the private participation model, approved by the Union Cabinet, is aimed at facilitating speedy execution of rail connectivity projects.
The move will give a boost to industrial development and significantly enhance freight traffic of railways, said an official statement.
Further it said the "transparent framework" has been suggested so that there is no ambiguity regarding the manner in which the projects are to be structured and executed. Zonal railways can be held accountable for the results.
The framework would also bring out the synergy of public private partnership and help railways in significantly increasing freight volumes and the industries to benefit from efficient rail transport, it added.
"The policy framework proposed would encourage speedy execution of rail connectivity projects and thereby generate both direct and indirect employment, besides spurring growth of freight. This would contribute to the economic growth of the country," the statement said.
The first mile and the last mile connectivity as well as inter-connecting lines for the entire freight commodity basket would be covered under the policy.
"The policy would provide much needed impetus to building of critical missing in railway network and evacuation of goods from ports, mines, big industrial units and plants," the statement said.
The policy comprises five models such as 'non-government railway', joint venture with equity participation by railways, capacity augmentation through funding by customers, Build operate transfer (BOT) and BOT annuity.
Agreements will be prepared for all these models.