Railway finances worsen, PPP projects put on hold

Projects in WB and Bihar to be affected

PTI | January 27, 2011



Faced with a financial crisis, Railways have put on hold all PPP projects including proposed plants at Kanchrapara in West Bengal and Madhepura and Marhora in Bihar.

Railways have to commit approximately Rs 8,000 crore per annum for these three projects - an EMU/coach factory at Kanchrapara, diesel locomotive factory at Marhora and electric locomotive plant at Madhepura - for assured purchase orders.

"In the current situation, the railways is finding it difficult to commit for the assured offtakes," sources in the Railway Ministry said and added that "due to the fund crunch, railways have put a temporary hold on these PPP projects and have set up a committee to examine how funds can be provided to PPP projects and also to its own production units.


 

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