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Blog Entry# 2089515  
Posted: Dec 13 2016 (12:09)

4 Responses
Last Response: Dec 13 2016 (19:11)
Rail News
Commentary/Human Interest
Dec 13 2016 (07:38)   Draft policy on suburban rail puts major onus on States

rdb*^   131570 news posts
Entry# 2089515   News Entry# 288434         Tags   Past Edits
Putting to rest the public demand for suburban trains, particularly in Bengaluru, the Ministry of Railways has come out with a draft Suburban Rail System Policy that entrusts major responsibility on the State government.
Among other things, the policy prescribes formation of a special purpose vehicle (SPV) and asks State governments to make land available for the project.
The policy clearly states that the available railway infrastructure cannot be utilised for suburban rail projects as it would affect long-distance freight and passenger train operations. The Indian Railways (IR) would offer land on lease,
if available, and in the alternative the government should acquire the same, along side the existing network. Projects that can be integrated with the existing railway system only would be considered.
IR and respective State governments would pool in equal equity, not exceeding 40 per cent of the capital cost of the project, to the SPV, while the remaining funds have to be raised by the SPV. The IR would provide its equity only when 70 per cent of the required land is made available for the project.
The policy states that the project can be executed either by the SPV or by the IR (on request by SPV); however IR has to do work on tracks, overhead equipment, and signalling since they need to be integrated with existing railway system.
Though all the revenues are payable to the SPV, IR may collect the revenue and remit the surplus (if any) to the SPV every year. The State government is bound to reimburse operation and maintenance expenses, depreciation and revenue accrual to IR, on a pre-decided agreement with the SPV.
It says IR is not in a position to fund these projects because of severe fund crunch.
Anil Kumar Sastry
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Dec 13 2016 (12:09)
rdb*^   31694 blog posts   384473 correct pred (81% accurate)
Re# 2089515-1            Tags   Past Edits

Dec 13 2016 (18:59)
For Better Managed Indian Railways~   1933 blog posts
Re# 2089515-2            Tags   Past Edits
(1) Good step which should have been taken long ago.
(2) Suburban trains should be operated on large scale on the dedicated tracks.
(3) Moving a step forward, IR must plan to have separate tracks for Suburban and long distance trains in Mumbai, Kolkata, Chennai etc and form a JV with respective state govts. to operate the respective suburban trains. Major part of the taxes and economic benefits due to the daily commuters directly or indirectly go the respective state govt., it is duty of state govt and not IR to
provide subsidised travel to these daily commuters in return.
(4) Cheap Suburban travel is a subsidy given by IR to relatively rich residents of metro cities at the cost of general (rural/small town)populace of country which are relatively much poorer.

Dec 13 2016 (19:01)
rdb*^   31694 blog posts   384473 correct pred (81% accurate)
Re# 2089515-3            Tags   Past Edits
Cities like Ahmedabad, Nagpur shd also be catered at this stage now,,,

Dec 13 2016 (19:11)
For Better Managed Indian Railways~   1933 blog posts
Re# 2089515-4            Tags   Past Edits
Why not!!
Ahmedabad/ Nagpur has more population today as compared to Mumbai when the first suburban train was introduced in Mumbai several decades ago!
But it has to be preceded by a proper study of traffic, routes and techno-economic analysis.

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