Indian Railways has proposed significant amendments to its decade-old public–private partnership (PPP) policy aimed at reducing risks for private investors and accelerating infrastructure development across the network.
Officials said the proposed changes include extending the concession period to 50 years and shifting full responsibility for land acquisition to Indian Railways, two steps expected to improve investor confidence and project viability.
Key Policy Reforms Proposed
The revised framework introduces two major reforms:
1. Longer concession period
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Proposed extension of concession tenure to 50 years
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Current PPP projects typically have concession periods ranging from 20 to 35 years
A longer concession window is expected to provide investors with greater certainty in recovering project investments.
2. Railways to handle land acquisition
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Indian Railways will assume responsibility for land acquisition costs and processes
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Currently, land acquisition costs are borne by the private partner or the special purpose vehicle (SPV) formed for the project
Officials noted that land acquisition challenges have been a key factor behind delays in several infrastructure projects.
Push for PPP in Rail Infrastructure
The policy revision comes as the railways prepares to expand private participation in infrastructure development.
According to officials, 15 projects worth ₹35,800 crore have already been identified for development under the PPP model by March 2028.
These projects include:
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Construction of new railway lines
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Track doubling projects
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Redevelopment of railway stations
Several PPP proposals have already been forwarded for final approval, and additional projects are expected to be added to the pipeline.
Limited Progress Under Existing Policy
The current PPP framework was introduced in 2012, but adoption has remained relatively limited.
As of December 2025:
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18 PPP projects worth ₹16,686 crore have been completed
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7 projects worth ₹16,362 crore are currently under implementation
Many of these projects involve coal connectivity corridors and port connectivity lines, which support freight movement and industrial supply chains.
Learning from Other Infrastructure Sectors
Officials said the proposed reforms reflect lessons learned from the highway sector, where government-led land acquisition has helped accelerate project execution.
The policy shift also aligns with broader logistics initiatives under the PM GatiShakti National Master Plan, which seeks to improve multimodal connectivity and infrastructure efficiency.
Precedent in Cargo Terminal Policy
A similar approach was recently adopted for cargo infrastructure. Railway Minister Ashwini Vaishnaw announced 50-year concession periods for Gati Shakti Multi-Modal Cargo Terminals (GCTs) to encourage long-term private investment.
Officials believe that applying similar principles to broader rail infrastructure projects will make PPP participation more attractive and accelerate capacity expansion across the national rail network.
