Railways to see USD 140 bn investments in 5 years: Prabhu

Written By Unknown on Rabu, 25 Maret 2015 | 20.07

Prabhu said infrastructure development was crucial to promote and sustain economic growth, and that it had to be led by public spending

Indian Railways will see investments of USD 140 billion over the next five years, Railways Minister Suresh Prabhu said in an exclusive interview to CNBC-TV18 Wednesday.

Making Railways the engine of economic growth is one of the objectives of the Narendra Modi-led NDA government. 

There are investments happening in brownfield rail projects at the moment, Prabhu said, adding that Railways was working on multimodal transport systems, which included road and water.

He said there huge potential for development in inland waterways.

Prabhu said infrastructure development was crucial to promote and sustain economic growth, and that it had to be led by public spending. He estimates that India will need USD 5-7 trillion over the next 15-20 years, at an incremental rate of 10 percent every year.

He said in addition to capital, availability of land would be critical to developing India's infrastructure. 

In his first Budget speech as Railway Minister last month, Suresh Prabhu had said that gross budgetary support from the central government was "neither viable nor necessary", despite the cash crunch his ministry was facing.

For remunerative projects, he felt it was possible to generate resources through market borrowings, routed through partnerships with Railway PSUs and IRFC. Also, some projects could be equity-driven, through partnerships with State governments, he had said in his speech.

VIDEO AND INTERVIEW TRANSCRIPT TO FOLLOW


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