BANGALORE: Nearly six months after seven railway projects were announced for the state in public private partnership (PPP) mode, the Rail Vikas Nigam Limited (RVNL) is conducting a bankability study for undertaking these projects.
RVNL chief project manager Alok Tiwari said, "Financial aspects of each project like cost, projected income, sustainability, cost of operations and pattern of funding would be analysed. The study will be completed in five to six months.’’ Alok said that after the study, RVNL will prepare a financial model for each project in consultation with the Railway Board. The financial model would be placed before the investors to generate expression of interest. Following which the project would be awarded to the private investor according to the terms specified in the financial model.
‘’Though the project would be awarded to the private investor, it would be undertaken by the RVNL through a special purpose vehicle for each project as each project has to meet the standards specified by the board. Moreover, rail traffic for each of these projects would be sourced through other railway lines. Hence, private investors cannot handle the project independently,’’ Alok said.
In her budget speech the railway minister had said that Talguppa-Honnavara, Shimoga-Harihara, Whitefield-Kolar, Gadag-Haveri, Tumkur-Davanagere, Bijapur-Shahabad and Dharwad-Belgaum projects would be considered in PPP mode.
Upon the request of the state, the Dharwad-Belgaum line was also included. None of the private investors have come forward to invest for this project due to lack of a financial model.