Modernisation of the Indian Railways is likely to cost more than Rs 14 lakh crore over the next 10 years, an industry body has said. "Indian Railways requires modernisation which would cost more than Rs 14 lakh crore over the next ten years, so that it could have an extensive network to cover the entire country," Assocham said. 

Besides, there should be an emphasis on developing entrepreneurial and managerial skills, it said. Indian Railways, which is the third largest rail network in the world, employs 14 lakh employees, it added. "The rail lines measure up to 64,015 kilometres, up from 53,596 kilometres in 1947," Assocham said. 

The chamber said that there was a need to increase the government spending on rail network in the country. Both developed and developing countries are spending hundreds of billion of dollars each year to add more rail lines. China is spending $ 300 billion (about Rs 14 lakh crore) over the next three years to expand and modernise its rail network, the chamber said. 

The role of infrastructure support in terms of augmenting rail, road, ports and warehouses holds the key to economic success of a country, it said. Indian railways should adopt a customer-focussed approach and modern technology through public-private-partnership in construction of dedicated freight corridors, high-speed rail corridors and world-class railway stations, Assocham said. 

"PPP projects can set up special purpose vehicles for manufacturing of locomotives, coaches and wagons," Secretary General D S Rawat said. Also, the railways needs to diversify beyond its major business of bulk transfer, strengthen its competitiveness and develop partnership with different stakeholders to provide inter-modal logistics, it said.