No private ownership of freight corridor: Lalu

Putting speculation over the ownership of the proposed Dedicated Freight Corridor to rest...

Putting speculation over the ownership of the proposed Dedicated Freight Corridor DFC to rest, Railway Minister Lalu Prasad Yadav today said the company to be floated for would be a 8216;8216;railway-owned company8217;8217;.

Yadav, who attended a group of ministers8217; meeting over the DFC with Finance Minister P Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia, ruled out privatisation. A final decision is likely to be taken on August 9 and the ministry is expected to send a formal reply to the Finance Ministry the same day.

Yadav, however, did indicate that the ministry was not completely averse to the idea of 8216;8216;private participation8217;8217; provided Railways owned the company set up to execute the project. Although the Railway Ministry top brass was tightlipped on the issue, sources hinted a model where private sector could be roped in to lend money without becoming stakeholders was being explored.

The first phase of the 2,700 kilometer long DFC project envisages linking Delhi-Sonnagar-Howrah and Delhi-Mumbai. Ministry sources said there was a growing feeling that with a fund-balance of Rs 15,000 crore in kitty, the ministry was capable of constructing the Rs 25,000-crore project without private participation.

The report of the Task Force on Delhi-Mumbai and Delhi-Howrah freight corridors had recommended a new organisation structure wherein the Special Purpose Vehicle is owned jointly by the Railways and users of bulk-freight services like port operators, shipping companies, oil companies, steel and power companies.

MoU with SBI for ATMs

The Railways on Friday signed an MoU with the State Bank of India to install ATMs at 681 railway stations across the country. The ATMs would come up in 15 months time and the contract would last 20 years. As many as 298 stations out of the 681 are smaller stations where there are no ATMs at present. SBI will also provide ticketing facility through 8216;8216;Internet ticketing kiosk8217;8217; by installing personal computers at 383 major stations in association with Indian Railway Catering and Tourism Corporation IRCTC. The bank will be free to take connectivity from any service provider at their own cost. 8212;ENS