Indian Railways plans to offer as many as 500 trains to private operators over the next five years, as per the senior railway ministry official. 150 modern trains will be run by private operators in the first phase followed by 350 additional trains. The bidding documents for 150 of these trains is to be finalized by the Railway department.
The railways is already in the process of finalizing the bidding document for 150 such trains that will be run by private operators in the first phase. This will be followed by 350 additional trains which will also be run by private operators, the official said, requesting anonymity.
The ministry on Wednesday said the draft request for qualification and the draft concession agreement have been uploaded on the websites of Niti Aayog and Indian Railways for seeking feedback from the stakeholders. Ministry of Railways has planned for redevelopment of railway stations through Indian Railway Stations Development Corporation Limited (IRSDC), Rail Land Development Authority (RLDA) and other central government agencies, through simplified procedures and for longer lease tenure.
Indian needs an additional requirements of 3,000-4,000 more passenger trains, however, there are arounds 13,000 passenger trains runs every day in Indian Railways. It is expected that the Private train operators will be able to handle some of the traffic. The step is also expected to boost private investment in the sector and ease burden on government finances.
In a first phase, as many as 150 modern trains will be run by private operators across 100 routes, offering world-class technology and services to passengers, along with improving punctuality. A discussion paper issued last month by the government’s policy think tank NITI Aayog and the railway ministry has forecast an investment of about ₹22,500 crores to run these trains.
AS discussed in the budget, ‘With infrastructure, maintenance and safety handled by the railways, these private train operators will be allowed to procure trains, operate and maintain them, provide better on-board experience and services to passengers, in terms of food, comfort, entertainment, among others. According to Railway Board chairman Vinod Kumar Yadav, the private operators can start operations once their rakes are ready. “The entire process, including bidding, as well as procuring rakes is likely to take 18-24 months,” Yadav told reporters.
As per the reports, in January that the government’s move attracted two dozen firms, including global majors Alstom Transport, Bombardier, Siemens AG and Macquarie and domestic companies such as Adani Ports and Special Economic Zone, Indian Railway Catering and Tourism Corp. (IRCTC). Companies will have to bid for a network of routes and bids will be finalized on a revenue-sharing model. “They (companies) will have to pay the haulage (charges for using tracks) charges at ₹686 per km to the railways. Along with this, they will have to have a portion of their revenue, which will be mentioned in the bidding document,” Yadav said, adding that companies will have the freedom to decide the fare and it will be market-determined.
