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Private Sector participation in Railways Freight Terminals | The Ministry of Railways has finalized policy on Private Freight Terminal (PFT) with the participation of the private sector. The main objectives of this policy are to enable rapid
development of network for freight terminals with private investment to integrate
rail transport with supply chain to provide efficient and cost effective logistic
to end users and a new business opportunity to the investor who gets rail access
to handle third party cargo. This policy has become effective from May 31, 2010.
The decision to formulate such a policy was announced by the Railway Minister,
Mamata Banerjee, in her Railway Budget presented last year. Mamata Banerjee also
held pre-budget discussions with the representatives of chamber of commerce and
industry followed by a post budget workshop between Railway Board and private
sector representatives to obtain their feedback on a number of such policy initiatives
involving private sector participation. The salient features of PFT are: 1) Terminals
(green or brown field) to come up only on private land. 2) Depending on the traffic
proposed, appropriate rail infrastructure and equipment to be provided to conform
to EOL function. 3) Can handle all traffic except outward coal, coke and iron
ore. 4) Application fee of Rs. 1 crore and security deposit of Rs. 1 crore to
ensure timely commissioning of PFT. 5) Can provide value added logistics related
services and charge for the same. 6) In principle Approval within 100 days. 7)
Period of agreement for 20 years extendable by one period of 10 years. Further
extension permitted on the basis of extant policy at the time of such extension.
8) Revenue sharing to 50 per cent of terminal charge or Rs. 10 per ton whichever
is higher with a moratorium of 2 years for Brown Field and 5 years for Green Field
PFTs. Investors in this scheme will be benefited in many ways like, a new business
opportunity to augment presence in logistics chain, rail access to third party
cargo, can provide value added services and charge for the same, long term contract
with railways, and underutilized/unutilized existing sidings get opportunity for
commercial utilization for their facility. The policy document also include the
eligibility criteria and other relevant details, which can bee seen at Ministry
of Railways' website www.indianrailways.gov.in. |
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