- The government has laid out a blueprint for a substantial boost in India’s infrastructure.A key element of that is the upgrade of Indian Railways.
- However,the Finance Minister has accepted that the government did not have the fiscal space to make the kind of heavy investments that are required to modernise the Railways.
- As modernising railways requires an investment of Rs 50 lakh crore between now and 2030.The capital outlays for Railways is just about Rs 1.6 lakh crore per annum and even completing sanctioned projects would take decades.
- Hence,the government will be inviting private companies to own and operate trains on select routes.Further,it is also planning to corporatise the seven production units that build coaches,engines and wheels.
- A holding company called the Indian Railway Rolling Stock Company (IRRC) will also be established.It will control and independently manage all these factories.
