Wagon makers, rail operators seek clarity on rail budget

By Jasudha Kirpalani and Swati Pandey

MUMBAI (Reuters) - India's rail budget aims to boost public-private partnerships to help revive its weak infrastructure but wagon makers and rail operators are not cheering yet as they awaited clarity, company officials said.

Rail minister, Mamata Banerjee on Friday said a new coach factory would be set up in public-private partnership and plans to develop 50 stations with international-level facilities and multi-functional complexes at 50 railway stations.

But, operators wanted more details on the revenue-share and structure of public-private model.

"A lot of money needs to be spent and the amount of money she's talking of to be spent is just enormous," chairman Ajay Mittal, rail operator Arshiya International Ltd said.

"That cannot be done without public-private partnership and for that you need clarity."

With a 63,327-kilometre long network, the railways form an integral part of Indian life, transporting over 18 million passengers and over 2 million tonnes of freight daily.

But, nearly two-thirds of the country's cargo is still transported over roads, and the railways opened the sector to private players to carry containerised cargo to regain share.

Indian railways said it would invest 18.8 billion rupees in freight corridor project in 2009/10, dedicated for cargo, with focus on the eastern-side. It is also considering passages in north-south, east-west, east-south and south.