India’s Ministry of Railways announced plans to invest Rs. 3,800 crore (approximately $700 million) to build port connectivity projects aimed at improving supply chain services.
The announcement was made by Railway Minister Pawan Kumar Bansal in his fiscal 2013-14 budget presented to the Parliament on Wednesday.
The ministry earlier this month released a draft policy on “Rail Terminals at Private Ports,” and solicited suggestions and comments from the industry before issuing final guidelines for the development of such projects through private participation.
Bansal said Indian Railways is expected to handle 1 billion metric tons of revenue-earning freight in fiscal year 2013-14, which begins April 1, 2013. Freight earnings for 2013-14 are estimated at Rs. 93,554 crore (about $17.3 billion), a potential gain of 9 percent over the current fiscal year ending March 31, 2013.
From April 2012 to January 2013, Indian Railways hauled 827.9 million metric tons of revenue-earning freight, increasing 4.6 percent year-on-year.