CONTRACT SIGNED IN PRESENCE OF VISITING RAILWAY MINISTERNew Delhi,16 May:Cooperation between India and Malaysia in the Railway sector reaches new heights with the Government of Malaysia entrusting the mega project of Electrified Double Tracking Project between Seremban – Gemas to IRCON International Ltd. a Public Service Undertaking of the Ministry of Railways. The singing ceremony and the award of contract to IRCON for this mega project was signed in presence of the Minister of Railways, Shri Lalu Prasad who is currently in Malaysia and the Minister of Transport of Malaysia, Mr. Datuk Ong Tee Keat in Kaula Lumpur, Malaysia today.
Speaking on the occasion, Shri Lalu Prasad said that this project will be completed within 48 months time with an approximate cost of one billion US dollars. This mega project will involve the construction of 34 river bridges, 107 small bridges and one 8-km long tunnel. In the first phase of this project, the work upto Sangai Gaddud will be completed by July 2010. He said that award of this contract to IRCON is an important achievement in the bi-lateral cooperation and this cooperation in the field of infrastructure will be further strengthened between the two countries.
Indian Railways’ presence in Malaysia dates back since 1988 with IRCON executing the rehabilitation of Railway track from Paloh to Singapore and Slim River to Seremban. Since then, IRCON has successfully completed and commissioned 11 major railway projects, which included approximately 441 kilometers of track rehabilitation and construction 200 kilometers of new track. Besides this, IRCON is having a contract or leasing of locomotives to Malaysian Railways for the past few years which is being extended on yearly basis.
Earlier, addressing a gathering at a reception hosted by Bharat Club (Association of Expatriate Indians in Malaysia) and Consortium of Indian Industries in Malaysia in his honour in Kaula Lampur, Shri Lalu Prasad said that Indian Railways have taken an initiative to encourage Public Private Partnership (PPP) for the non-core sector in Indian Railways. Indian Railways need Rs. 80,000 crore for the completion of its on-going projects. Important projects like upgradation of 26 railway stations as world class level and Eastern and Western Dedicated Freight Corridors need a huge financial and technical investment which can be done through PPP model. He invited Bharat Club and Consortium of Indian Industries in Malaysia to participate in important non-core Railway projects like construction of logistic parks, wagon investment scheme, wagon leasing scheme and setting up of agricultural outlets at more than 7000 railway stations, setting up of new factories for production of wagons, coaches and locomotives as well as construction of Dedicated Freight Corridors.
Shri Lalu Prasad said that his meeting with Malaysian Transport Minister, Mr. Keat was fruitful and both sides have agreed to further strengthen the cooperation between the two countries in the field of railway infrastructure.