Railway Minister Lalu Prasad on Monday ruled out indiscriminate privatisation of railways, but said he was not against public-private partnerships for running the nation's 'lifeline'.

Announcing an investment of over Rs 3,00,000 crore (Rs 3,000 billion) in the next five years for modernisation programme in the railways, he said: "I am against indiscriminate privatisation of railways. Under my leadership, railway would not be handed over to private players.

"But this does not mean that I am against PPP." The minister, who was addressing an infrastructure conference in New Delhi, said the core activities like running of trains should remain with railways, while private players are invited for non-core activities.

Finance Minister Chidambaram too endorsed Yadav's view that railways should retain core activities. "I endorse the railway minister's view that core activities in crucial infrastructure area like railway could remain with the public sector," he said while suggesting that private sector could be roped in for allied activities.

Buoyed by spectacular turnaround of Rs 20,000 crore (Rs 200 billion) cash surplus by end of this fiscal, the railway minister announced that a comprehensive scheme involving investment of Rs 3,00,000 crore (Rs 3,000 billion) in next five years was being planned, of which 40 per cent is expected to come from public-private partnership.

Private players are expected to be involved in running container trains, construction of dedicated freight corridor, modernisation of railway stations and establishment of logistic parks and warehouses.