The Indian Railways has lined up mega investment in a bid to scale up its operations, including a revamp of the signalling system across its network, a new $3 billion electric locomotive unit, and a station-development plan for large cities. All these projects could cumulatively be worth over $15 billion. Railway Minister Piyush Goyal said discussions are underway to ensure that the deals are structured in a way that local manufacturing gets a fillip and cost comes down. He said, “We want to replicate the model that was used for LED bulbs, where the cost was brought down. If costs are lower and local manufacturing is ensured, we will scale up investments.”
The railways is planning extensive consultations over the next few weeks, to work out a model that serves the twin goals with the minister maintaining that funds are not going to be a constraint. Goyal said, “There is enough budget and we have many options to raise resources.” The government has stepped up investment in railways as it seeks to modernise the creaking infrastructure, a result of low investment and overuse.
Sources said the complete modernisation of railways' signalling system, including automation at a cost of £7.80 billion is expected to get approval in the Budget. The Budget is set to focus on electrification as railways has advanced the deadline for complete switchover from diesel to electric by two years to 2020.
