British firms oppose PPP in Indian Railways
The Economic Times: 25 Apr, 2008

NEW DELHI: The dramatic turn-around of the Indian Railways may have earned laurels for Rail Minister Lalu Prasad but his hankering for Public Private Partnership (PPP) in the department has few takers.
The latest not to find in favour of PPP is a British rail team currently here to attend an India-UK Seminar on Railways.
The 12-member team, led by British railway minister Tom Harris and comprising representatives of British rail companies, on Friday said PPP in Indian Railways is not advisable. These senior members of the Railway Industry Association (RIA) of Britain said they would like to work with the Indian Railways "but definitely not based on PPP".
"PPP is based on a set of performance contracts that include measures of the time and cost of work done, but more importantly of the results or outcomes of that work," Jonathan Beckitt of the CMS Camerson McKenna, a leading British Railway infrastructure provider told delegates at the seminar on Friday.
The British rail companies have shown interest in providing solutions in areas like passenger information and passenger interface besides sharing advanced methods of measuring track and train performance.
The British delegation is here ahead of the Indian Railways inviting bids for joint ventures with private companies for locomotives, signalling systems and coaches for the dedicated freight corridor project soon. British Companies are keen to partner Indian companies for possible joint ventures.
According to Beckitt, British companies are keen to partner Indian Railways in areas like passenger information, passenger interface, track and train performance and signalling and track equipment. They are also looking at forging tie-ups with Indian companies to participate in the dedicated freight corridor project.
"But not in the form of PPP," said Beckitt.
PPP found focus in the Railways Minister's budget speech with him declaring that neither favours blind privatisation of the Railways nor is PPP a compulsion.
The minister suggested that the Indian Railways are seeking partnership with the private sector on terms that are in the interest of the Railways and their customers.
See also:
It’s India calling for British railway firms
Economy Bureau: April 26, 2008
New Delhi, Apr 25 Indian Railways, which hopes to upgrade infrastructure and expand capacities in a big way, may just find a new technology partner in the UK.
A 12-member delegation from the British railways industry led by the minister for railways, Tom Harris, is now in India. The team has evinced interest in working with Indian Railways.
“The British railways industry is looking forward to forging partnerships with the Indian railways sector and has much to offer to by way of technology and expertise in this area,” Harris said on Friday at a seminar on Railways: Towards Building Greater Partnership, organised by the Confederation of Indian Industry (CII) and the UK Trade and Investment.
British railway Companies are especially keen on working in projects, such as dedicated freight corridor, station modernisation, signalling, rolling stock and passenger services. “The British railways industry offers a great deal of expertise in various areas of interest to Indian Railways like engineering and technology, reducing carbon emissions, passenger comfort and safety,” the British minister added.
Apart from members of the UK industry body, Railway Industry Association, rolling stock and rail equipment manufacturers, such as Unipart Rail, Bombardier Transportation Ltd, Balfour Beatty Rail Projects and Invensys Rail Systems, are part of the delegation.
The delegation is also holding a number of meetings with the railway ministry to discuss these issues further.
Indian railways, which has a massive Plan size of Rs 2,51,000 crore for the Eleventh Plan period, is looking at major project, such as modernisation of its track and signalling systems, rolling stock modernisation, construction of the dedicated freight corridors and station upgrade, much of which will be done through the public private partnership route.
See also:
UK offers expertise in expansion of Indian Railways
The Hindu: April 25, 2008
New Delhi (PTI): Impressed by the turnaround of Indian Railways, Britain on Friday evinced interest on expansion of Asia's largest rail network and offered expertise for its signalling system and track electrification.
It said it wanted to join hands in various ongoing projects given the similarities of challengies and "capacity constraints" faced by both rail networks.
"Today, following the financial turnaround of India's railways in recent years and the exceptional opportunities for growth, I hope that we can build on that collaboration so that the UK can continue to contribute to the development of one of your most vital national assets; the rail network," British Railways Minister Tom Harris told a seminar organised by the Indian Railways here.
He said he was "very impressed by the turnaround from massive deficiency to massive profit" and at the same time not increasing fares.
Offering British expertise in signalling system and track electrification, he said there were opportunities for Britain to make contribution in expansion and upgradation of the network.
"We can join hands in the ongoing projects here," Harris said.
Britain is currently extending expertise to the Delhi Metro Rail Corporation in rolling stocks and designing stations.
Drawing a parallel with British Railways, he said "a lot of challenges are similar to both of us and we both are facing capacity constraints".
See also:
Indian Railways inspires UK minister
NewsByte: 25 April, 2008
By AMIT AGNIHOTRI
New Delhi, April 25: It’s a kind of role reversal. The Indian Railways, which developed as a legacy of the British Raj, is now inspiring awe from the UK railways minister himself.
"The most remarkable thing about the Indian railways is the financial turnaround it has achieved over the past few years. Given the size of the IR operations, this is amazing," UK railways minister Tom Harris told this newspaper.
Indian railways minister Lalu Prasad Yadav said while presenting the Rail Budget 2008-09, that the railways achieved a cash surplus of around Rs 25,000 crores by end of financial year 2007-08.
Keen to get a share in the pie of the growing Indian Railways, which has many large-scale projects planned, the UK railways minister is pushing the envelope for the private British rail companies who want to do business here. "We are facing the same challenges as the Indian Railways in enhancing carrying capacity, improving infrastructure, develop strategic freight network, making the railway stations more passenger friendly and accessible for disadvantaged. Hence a lot of scope for working together," said Mr Harris, who met the minister of state for Indian Railways R. Velu.
According to Jeremy Candfield, director general, railways industry association, UK, the British rail companies have expertise in project management, rolling stock engineering design, signalling and electrification, which can be of interest for the Indian railways.
"Just as the Indian railways has recognised that substantial investment in the rail network is vital, our railways must do so to manage the significant growth of passenger and freight volumes now being experienced," said Mr Harris.
While Indian railways minister highlighted many growth areas like new trains, coach and wagon factories, dedicated freight corridor, and enhancing passenger amenities in the Rail Budget 2008-09 citing future demands he stated that the Indian Railways is eyeing investments worth Pounds Sterling 28.5 billion through sizeable public private partnerships over the next five years.
The UK railways minister said the number of passenger train kilometres in UK has risen by 20 per cent.