New Delhi: Railways Ministry new R3i (Railways’ Infrastructure for Industry Initiative) Policy is

aimed at attracting private sector participation in rail connectivity projects so that additional rail

transport capacity can be created.

The primary objective of this policy is to retain and increase rail share in freight traffic.

It also aims at making rail option more competitive for prospective customers by sharing their

burden in getting rail connectivity and allowing them to get a share in the freight revenues

generated through freight traffic moving via new line, an official statement said.

This policy shall not be applicable to lines intending to provide connectivity to coal mines and

iron ore mines directly or indirectly.

“Since railways earn 55 per cent of its total freight revenue from moving coal and iron ore, the

government has included a rider to keep connectivity to coal and iron ore mines away from the

new entrants,” it added.

As per the newly framed guidelines, private companies would be authorised to build tracks up to

20 km or longer distance adopting one of the four business models including full contribution

apportioned earning model, cost sharing freight rebate model, special purpose vehicle (SPV)

model and private line model.

With the Indian economy growing at a rate of eight per cent over the past few years, new areas

are opening for investment many of which do not have any rail connectivity.

These have significant potential for freight traffic and therefore Indian railways has to be

proactive in seizing these opportunities in order that the high rate of growth of freight traffic in

the last few years can be sustained, the statement said.
 —iGovernment Bureau