Indian Railways has decided to invest INR 200,000 crore for the modernization, capacity increase and completion of new projects during the 11th Five Year Plan.

Mr Lalu Prasad Yadav union minister of railways said that Indian Railways have decided to invite public private partnership in the non core sector for setting up of logistic parks, wagon investment schemes, wagon leasing schemes and also to participate in the setting up of more than 7000 agricultural outlets throughout the country. He added that Indian Railways would encourage the introduction of PPP model for setting up of new factories for production of wagons, coaches and locomotives.

Mr Yadav said that Indian Railways is going to upgrade 26 major railways stations as world class stations throughout the country including 4 metropolitan cities. There will be separate departure and arrival facilities for passenger to decongest existing crowds at station complex besides other modernized passenger amenities like world class waiting rooms, multi level parking, malls etc.

He further said that after earning a surplus of INR 25,000 crore during the year 2007-08 and with its operating ratio of 76%, Indian Railway have shown achievement which is much better than several top fortune 500 world companies. He said that after taking new initiatives in freight sector, Indian Railways have carried 238 million tonnes of additional freight and earned more than INR 14,000 crore additional freight revenue. In view of the increasing demand for freight and to reduce the congestion on existing railway lines, Indian Railways have decided to construct Dedicated Freight Corridors.

Mr Yadav concluded that "Our vision is to make Indian Railways world’s number one railway network and the days are not far away when the Indian Railways will be the best railways in the world."