RAILWAYS TO SETUP LOGISTICS CORPORATION OF INDIA BY JULY/AUGUST 2015,

RAILWAYS TO SETUP LOGISTICS CORPORATION OF INDIA BY JULY/AUGUST 2015,

RAILWAYS TO SETUP LOGISTICS CORPORATION OF INDIA BY JULY/AUGUST 2015,

 

No.PR-217
March 19, 2015
New Delhi
 

RAILWAYS TO SETUP LOGISTICS CORPORATION OF INDIA BY JULY/AUGUST 2015,
 

APPOINTMENT OF RAILWAYS REGULATOR BY 2016: ED TRAFFIC, RAILWAYS
 

Cabinet clearance is keenly awaited for setting up of Logistics Corporation of India as one more public sector entity to execute and implement PPP projects under Ministry of Railways which is likely to take a shape by July-August 2015, says Executive Director-Traffic/PPP, Ministry of Railways Mr. M S Mathur.
 

According to him, the appointment of railways regulator will take about a year as things are advancing towards this direction to regulate railways fair and freight as also suggest reforms on it, added Mr. Mathur.
 

Delivering his key note address at the National Conference on India’s Supply Chain Management under aegis of PHD Chamber of Commerce and Industry here today, Mr. Mathur said, “The cabinet clearance is keenly awaited for setting up of Logistic Corporation of India.  The railways have already moved a cabinet note to this effect.  We expect the new entity would be created in next 4-5 months to attain the objectives of implementing railways projects through public private partnership route”.
 

On the issue of railways regulator, Mr. Mathur said that the issue should be sorted out in next 10-12 months.
 

Its major task would be to suggest to the government the tariff and freight structure for the railways in addition to recommending to the government the reforms on pricing factor of the largest entity of the government that’s latest gross revenues have reached to Rs.140,000 crores against its working expenses of Rs.130,000 crores, he indicated.
 

The Executive Director pointed out that the railways generate Rs.10,000 crores of surpluses against its revenues and expenses which is insignificant to fund the modernization and expansion drive of the railways.  Due to this factor, the railways have not been able to pursue its investment drive since no government revenues come to railways and its dependents on private sector investments have sharpened over the year.
 

Between 2000 to 2012, the railways received investment commitments to an extent of Rs.2,200 crores which jumped off to 12,000 crores between 2012 to 2014 and now that FDIs are permitted in railways, it is expected that in next 2-3 years, the existing railways network would be transformed as the new government has such commitments at its command, explained Mr. Mathur.
 

Chairman of Central Warehousing Corporation (CWC) and Central Railside Warehouse Company Ltd Dr. C V Ananda Bose inaugurated the conference hoping that the new government and all its concerned agencies will do their best to put in place the supply chain management to catapult the Indian economy and its infrastructure.
 

In his welcome remarks Chairman Task Force on Logistics Management of PHD Chamber Mr. R S Bedi demanded preferential treatment and additional focus of the government in terms of policies for supply chain management of all logistics so that the cost to Indian economy is curtailed substantially and its infrastructure is positioned in the right direction.
 

ENDS

Koteshwar Prasad Dobhal
Consultant (PR)