The Ministry of Railways has secured in-principle approval from the Public-Private Partnership Appraisal Committee (PPP-AC) to develop six new rail lines covering 640 km under the PPP model, involving private investment of around ₹18,000 crore.
The projects—comprising four coal corridors and one each for bauxite and iron ore—will be implemented in Odisha, Telangana, and Jharkhand. Concessions will be awarded for 50 years, including construction, to bidders seeking the lowest viability gap funding (VGF), capped at 40% of project cost.
Under the proposed structure, Indian Railways will handle land acquisition, statutory clearances, DPR preparation, and freight operations, while private players will design, finance, build, and maintain the infrastructure.
Addressing concerns over tariff uncertainty, railway officials stated that freight rates are determined on a uniform, pan-India basis, with historical annual increases of 2–3%. The ministry has also agreed to share operational and financial data with bidders to improve project bankability.
The identified projects include key freight connectivity lines such as the Talcher coalfield corridor, Manuguru–Ramagundam line, bauxite linkage from Tikiri, Mahanadi Coalfields corridor Phase 2, Jajpur–Dhamra Port connectivity, and the Pakur/Nagarnabi–Godda line.
The move reflects a policy shift aimed at reducing private sector risks by transferring responsibilities such as land acquisition and approvals to Indian Railways, incorporating lessons from earlier PPP attempts that saw limited success in core rail infrastructure.