Indian Railways start process to allow private passenger trains in its network

Indian Railways on Wednesday (July 1) started the process of allowing private players to operate passengers trains in its network as it invited Request for Qualification (RFP).

The project entails an investment of around Rs 30 000. As per the proposal, private players can bid for operating on 109 pairs of routes through the introduction of 151 modern trains.

“Majority of Trains to be manufactured in India (Make in India). The private entity shall be responsible for financing, procuring, operation, and maintenance of the trains,” the railway ministry said in a statement.

The 109 routes have been formed into 12 Clusters across the Indian Railway network and each train shall have a minimum of 16 coaches said a statement from the Ministry.

The concession period for the project will be 35 years and a private entity responsible for financing, procuring, operation, and maintenance of the trains.

The trains are to be designed for a maximum speed of 160 kmph.

With several companies including Indigo, Vistara, Spice Jet, R K Catering, and MakeMyTrip and others showing interest to participate in operating private trains, the ministry is keen on starting the project earliest.

The private companies, which bags the tender to operate the train, have to pay lease charges and haulage charges (or freight charges for using infrastructure) to Indian Railways. Apart from fixing fare, private companies also have provided inside facilities like catering, cleaning, and supply of beddings to passengers.

During the pre-lockdown period IRCTC, a catering, and ticketing arm of railways operated three trains-New Delhi-Lucknow, Mumbai -Ahmedabad, and Ujjain-Varanasi. Since all the three trains operated successfully with occupancy was more than 70 %, the railways wanted to hand over more routes to private companies, said the official.