http://www.moneycontrol.com/news/business/fdirailways-will-usher-modernization-generate-jobs%E2%80%99_1167509.html
'FDI in railways will usher modernization, generate jobs".
With the government planning to allow 100 percent foreign direct investment in several areas of Indian Railways, the cash-strapped behemoth could well be on the track to reforms.
Nalin Jain, President and CEO, South Asia, GE Transportation and Aviation, shares with us his views on this.
What is your first response to the new FDI norms, how will it impact the Indian Railways?
It is a good move by the Cabinet and FDI liberalisation in the sector would help in modernisation and expansion of railway projects. It will give boost to infrastructure development and generate jobs. It is to be noted that the growth of the sector relies heavily on capital investment. Opening gates to FDI will provide necessary impetus to the sector and encourage private participation.
FDI has also been allowed in the Dedicated Freight Corridor. Will it give an impetus to the project that had been in a limbo for a long time?
Foreign investment can surely help expedite the process for ongoing big ticket projects that have been pending for long. The development of Dedicated Freight Corridor has a direct positive influence on the creation of more industrial corridors. Importantly, it will also help railways add capacity and help flourish business. The announcement will serve as a prompt resolution to investment-related concerns and help India take the next step in its economic growth.
India has a huge array of ageing locomotives, how will the new norms for locomotive manufacturing impact the sector?
Indian Railways has been trying to work through new loco manufacturing projects by attracting FDI through a PPP model. However, these projects have not seen the light of the day causing capacity and network velocity constraints. We are optimistic, that with renewed push from the government for attracting FDI - the tendering process for the shovel ready Bihar projects will be launched immediately.
GE India had made significant investments in Indian markets by setting up manufacturing capabilities in the country. How will GE leverage that capacity in bringing in world-class solutions for Indian railways?
We are committed to India and its growth in long term and would like to be a part of the modernisation of rail systems. Our active pursuit of PPP opportunities is a testimony to our keen interest in the sector. We have invested heavily in building world-class manufacturing capabilities locally. We have been shortlisted by the Indian government for the proposed diesel locomotive factory in Bihar and are hopeful of making a positive difference, if given a chance.
Finally, FDI is not yet allowed in train operations and safety, considering that Indian Railways does not have a great track-record in terms of safety, do you think that the same must also be liberalised thus allowing for better systems to come into play?
There is an immediate need to improve the railway infrastructure and FDI will only help in speeding up the process. Once the issue of infrastructure is tackled it immediately has a direct impact on operations and safety. Fast decisions on implementation of projects would also help in improving operations and safety standards.
For more on rail transportation, click here.
'FDI in railways will usher modernization, generate jobs".
With the government planning to allow 100 percent foreign direct investment in several areas of Indian Railways, the cash-strapped behemoth could well be on the track to reforms.
Nalin Jain, President and CEO, South Asia, GE Transportation and Aviation, shares with us his views on this.
What is your first response to the new FDI norms, how will it impact the Indian Railways?
It is a good move by the Cabinet and FDI liberalisation in the sector would help in modernisation and expansion of railway projects. It will give boost to infrastructure development and generate jobs. It is to be noted that the growth of the sector relies heavily on capital investment. Opening gates to FDI will provide necessary impetus to the sector and encourage private participation.
FDI has also been allowed in the Dedicated Freight Corridor. Will it give an impetus to the project that had been in a limbo for a long time?
Foreign investment can surely help expedite the process for ongoing big ticket projects that have been pending for long. The development of Dedicated Freight Corridor has a direct positive influence on the creation of more industrial corridors. Importantly, it will also help railways add capacity and help flourish business. The announcement will serve as a prompt resolution to investment-related concerns and help India take the next step in its economic growth.
India has a huge array of ageing locomotives, how will the new norms for locomotive manufacturing impact the sector?
Indian Railways has been trying to work through new loco manufacturing projects by attracting FDI through a PPP model. However, these projects have not seen the light of the day causing capacity and network velocity constraints. We are optimistic, that with renewed push from the government for attracting FDI - the tendering process for the shovel ready Bihar projects will be launched immediately.
GE India had made significant investments in Indian markets by setting up manufacturing capabilities in the country. How will GE leverage that capacity in bringing in world-class solutions for Indian railways?
We are committed to India and its growth in long term and would like to be a part of the modernisation of rail systems. Our active pursuit of PPP opportunities is a testimony to our keen interest in the sector. We have invested heavily in building world-class manufacturing capabilities locally. We have been shortlisted by the Indian government for the proposed diesel locomotive factory in Bihar and are hopeful of making a positive difference, if given a chance.
Finally, FDI is not yet allowed in train operations and safety, considering that Indian Railways does not have a great track-record in terms of safety, do you think that the same must also be liberalised thus allowing for better systems to come into play?
There is an immediate need to improve the railway infrastructure and FDI will only help in speeding up the process. Once the issue of infrastructure is tackled it immediately has a direct impact on operations and safety. Fast decisions on implementation of projects would also help in improving operations and safety standards.
For more on rail transportation, click here.
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