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Indian Railways is looking to adopt the public-private partnership (PPP) model for the development of key new infrastructure projects, officials confirmed. The move aims to share the financial burden of large-scale projects and attract private investment into the sector.
The railways is considering the development of new commercial lines, including mineral corridors, under the PPP model in the coming months. This shift follows discussions in a recent infrastructure review meeting, where it was emphasized that private investment could help ease the financial strain on the government, allowing more resources to be allocated to social sectors and other critical infrastructure.
The move towards PPP comes as part of an effort to diversify funding sources for railway infrastructure. While traditionally relying on the engineering, procurement, and construction (EPC) model, the Indian Railways has faced challenges in implementing PPP-based projects. Despite this, the railway sector is set to receive a significant boost in capital expenditure in the FY26 budget, expected to exceed the Rs 2.62 lakh crore allocation for the current fiscal year.
While the PPP model is being explored for commercial lines and infrastructure development, sensitive decisions regarding fares and passenger movement will continue to be managed exclusively by the Railway Board, according to a senior government official. |
