Railways asked to share risks in public-private ventures
By IANSFriday, February 5, 2010
NEW DELHI - In a pre-budget recommendation, the Confederation of Indian Industry (CII) has the asked the railway ministry to broaden its scope for public-private partnership (PPP) and share risks.
The PPP engagements need to be clearly segregated from outsourcing tasks of the railways and must essentially involve sharing of risks and rewards on investments between both partners in the process, CII said in a statement Friday.
The railway budget for 2010-11 is scheduled to bwe presented to the Lok Sabha for Feb 24. The budget session of parliament begins Feb 22.
CII also said the practice of lowest price tenders and quotes has to be broken and benefits like excise exemption, incorporation of price variation clause and e-tendering should be given to industry.
This would help more investments in its infrastructure, safety and customer-related issues, the chamber said in a memorandum.
