Another rail committee to examine a viable PPP model

Last Updated: Thursday, February 10, 2011 - 16:02

New Delhi: Railways have formed another
high-level committee on PPP projects, which would review the recommendations of a previous committee set up to rework the PPP model.

The high-level committee comprising five senior railway
officials would examine threadbare the report of the
six-member committee that was submitted on February 7, railway
sources said.

However, the railways said that nothing much should be
read into the formation of the new committee as it is
customary to set up an "appreciation committee" to look into
the recomemdations before it is presented to the Railway
Board.

The committee has been given five days to submit its
report. "The report is expected to be submitted by coming
Monday," the sources said.

Railways had on January 22 constituted a six-member
committee to formulate a policy document on suitable
bidding process and to go through the guidelines laid down in
the general financial rules and PPP related instructions of
the Finance Ministry and Planning Commission.

The status of the proposed world class stations, the
locomotive manufacturing units and several big ticket projects
are expected to become clearer once the suggestion of the
committee is approved.
These projects have created a lot of interest among
international bidders, with the Kanchrapara project in West
Bengal attracting the maximum of eight players, including
American giant GE.

Several other western companies like EMD, Bombardier
are also in the fray for Madhepura and Marhora locomotive
projects in Bihar.

Railways have maintained that till now, no PPP project
of this magnitude has been undertaken in the world. "These are
huge projects, so due diligence is required," Railway Board
Chairman Vivek Sahai had earlier said.

He said several bidders had sought changes in bidding
documents which prompted the Railways to set up the committee.

PTI



First Published: Thursday, February 10, 2011 - 16:02

More from zeenews

 
comments powered by Disqus