Prabhu assuages fears over privatisation of Railways

Union Railways Minister Suresh Prabhu today said the Centre was seeking private capital investment in cash-strapped Railways to meet the resource crunch and it does not amount to privatisation as the Railways unions claim.

"We want to get private participation but that does not mean we want to privatise railway's operations," he said, addressing an Asia Society event through video conferencing. Prabhu, who took over as the Rail Minister recently, said that some people, especially the unions, "do not understand" the difference between merely getting private capital and privatisation.

"There are unions who feel that Railways is going to be privatised, government will not own Railways anymore. Railways will continue to be an important, dominant part of India's social-economic culture and Government of India will make sure that we've proper trade-offs between private participation which can come through proper regulatory framework," he said, seeking to assuage the concerns.

Ever since the Narendra Modi-led government came to power, there has been a lot of talk on foreign and private investments in the Railways. The unions, who represent close to 20 lakh employees of the state-run transporter, have opposed such measures.