Railways needs massive funds for improvement: Prabhu
13 Dec 2014
Describing the finances of Indian Railways as "too tight for comfort", Railways Minister Suresh Prabhu on Friday said the railways needed massive investment.
Adding facts and figures to what is obvious to most of India's harried railway passengers, the minister said, "There is no fund for [railways] investment. There is a requirement of Rs6 lakh crore to Rs8 lakh crore for completion of announced projects.''
Speaking at an Agenda Aaj Tak event in Delhi, Prabhu said he had set some new rules regarding procedure. "I have ordered that not a single tender should come to me. Decision-making should go to the general managers."
Regarding the railway unions' opposition to change, especially to foreign investment in the sector, Prabhu said the unions' views "need to be considered and I will convince unions that it is for the interest of railways and the public.
"They have threatened strike, but everybody needs to talk. On [next] Thursday we are talking to them," he added.
Last week in Mumbai, the minister said foreign direct investment (FDI) in railways is necessary as projects worth Rs500,00-Rs.600,000 crore are stuck for want of funds.
On privatisation, he said: "The basic aim is that rail service should be better and the ideology is not the issue here."
He emphasised that railways cannot be privatised on the pattern of other sectors like road and aviation.
"Outcomes are important. Railways cannot be privatised like road sector or aviation sector," he said. "The government owns the railways in many countries."