Railways is looking at $500 billion investment in next 10-12 years

He might have dozed off during his yoga session on the International Yoga Day, but as a minister of railways, the lifeline of India, Sures Prabhu dreams big. His ministry is looking at $500 billion investment for next 10-12 years, according to a news report in The Economic Times.

"We need to focus on infra sector for growth in India. Infra growth directly relates to GDP growth in India," he told the ET.

"We are focusing on adding capacity, modernising Railways. We will give out high value contracts for rail infra in the next 6 months.We are negotiating with various companies for funding rail capex," Prabhu added.

In his Twitter handles, Prabhu has tweeted, "Dedicated Freight Corridor gets big boost. It will drastically change the Rail, there will be 50% jump in freight," he has tweeted earlier in the day. "DFC will increase Rail revenues, add speed to goods movement, and reduce congestion, passenger trains will run at increased speed, punctuality.”

According to Prabhu, "DFC plays a big role in PM mission Make in India as cost, time of goods movement improves, will create jobs." He estimates that it will take 3-4 years time to complete DFC.

The Cabinet has given approval for the revised cost estimate of DFC Project, including land costs and financing plan. The corridor will pass through Punjab, Haryana, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Maharashtra, Gujarat and Rajasthan.

The revised cost estimate comprises construction cost of Rs 73,392 crore of the Eastern and Western DFC. The land acquisition cost will be Rs 8,067 crore. This excludes the cost of the 534-km Sonnagar-Dankuni section proposed to be implemented through Public-Private Partnership (PPP) route, confirms the ET news report.