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Public private partnership Case Study

Case Title:

Building India: The role of PPPs in Indian Railways

Publication Year : 2010

Authors: S Chaudhuri and S Chakraborty

Industry: Transportation


Case Code: PPP0007IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Indian Railways had been one of the oldest and the second most extensively networked railways in the world. To develop the Indian railway system, a massive investment was urgently required. It was not possible for the Indian government to finance the entire cost of the project. To implement the railway projects, the role of private finance was very important and this was possible through the PPP (public private partnerships) model. However, PPPs in Indian Railways (IR) had been considerably low, when compared globally. One of the reasons cited had been the Indian Railways Act 1989, which discouraged private participation in IR. But at present IR had opened the way for the PPPs in the form of:

  1. Special purpose vehicles (SPVs)
  2. Special economic zones (SEZ)
  3. Container operations
  4. Construction of dedicated freight corridor
  5. Wagon investment scheme
  6. Auxiliary services.

With this focused and professional approach, the IR would help India to leapfrog in the growth and development of the economy.

Pedagogical Objectives:

  • To have a brief idea on PPPs.
  • To have a brief idea about the implementation of PPPs in IR.
  • To have an understanding on SPVs.
  • To have an understanding of the basic activities of IR.
  • To the challenges faced by IR while implementing PPP projects.

Keywords :  Indian Rail, PPP (public private partnerships) in Indian Rail, Mass transport systems, Core activities of Indian Rail, Non-core activities of Indian Rail, Special purpose vehicles (SPVs), Container operation, construction of dedicated freight corridor, wagon investment scheme, Locomotive, wagons and coaches, Passenger terminals, Surendarnagar-Pipavav broad gauge line, Hassan-Mangalore Rail Development Company, Ministry of Railways, High-speed passenger corridors, Indian Railways Catering and Tourism Corporation (IRCTC), Golden quadrilateral, Exogenous risks, Indian Railways Regulatory Authority, Nation building, Indian Railways Act

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