Railways begins plan to allow private companies to operate passenger trains, invites participation for 218 routes

The project would entail a private sector investment of about Rs 30,000 crore, the Railways said. This is the first initiative for private investment for running passenger trains on the Indian Railways network.

Press Trust of India July 01, 2020 23:32:19 IST
Railways begins plan to allow private companies to operate passenger trains, invites participation for 218 routes

The Railways on Wednesday formally kickstarted its plans to allow private entities to operate passenger trains on its network by inviting request for qualifications (RFQ) for participation on 109 pairs of routes through 151 modern trains, the national transporter said.

The project would entail a private sector investment of about Rs 30,000 crore, the national transporter said.

This is the first initiative for private investment for running passenger trains on the Indian Railways network. It began last year with the Indian Railway Catering and Tourism Corporation (IRCTC) introducing the Lucknow-Delhi Tejas Express.

"The objective of this initiative is to introduce modern technology rolling stock with reduced maintenance, reduced transit time, boost job creation, provide enhanced safety, provide world-class travel experience to passengers," the Railways said.

Railways begins plan to allow private companies to operate passenger trains invites participation for 218 routes

The 109 origin-destination routes have been formed into 12 clusters across the Indian Railway network. Each train shall have a minimum of 16 coaches, it said.

The Railways also said that majority of these modern trains are to be manufactured in India under 'Make in India' and the private entity shall be responsible for financing, procuring, operating and maintaining the trains.

"Trains shall be designed for a maximum speed of 160 kmph. There would be a substantial reduction in journey time. The running time taken by a train shall be comparable to or faster than the fastest train of the Indian Railways operating in the respective route, it said.

The concession period for the project shall be 35 years and the private entity shall pay the Indian Railways fixed haulage charges, energy charges as per actual consumption and a share in gross revenue determined through a transparent bidding process, the transporter said.

These trains shall be operated by the driver and guard of Indian Railways. The operation of the trains by the private entity shall conform to the key performance indicators like punctuality, reliability, upkeep of trains etc, the Railways said.

Operation and maintenance of the passenger trains would be governed by standards and specifications, and requirements specified by Indian Railways, it said.

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