Indian Railways’ ticketing arm, IRCTC is now collaborating with BHEL with the aim to run private trains.
Both these PSUs are also working on forming an SPV to run passenger trains on the routes where IRCTC will put in bids.
Read on to find out all the details!
IRCTC To Join BHEL To Run Private Trains
Indian Railway Catering and Tourism Corporation (IRCTC) and Bharat Heavy Electricals (BHEL) will now be collaborating in order to run private trains. They are reportedly considering the formation of a Special Purpose Vehicle (SPV) to run passenger trains on the routes where IRCTC has put in bids.
An official close to the development has stated, “BHEL will be putting in the money required for private rail service, while IRCTC is going to focus on operational requirements.” He also stated that the business model of IRCTC has not been capital expenditure oriented; only the ability to improve operations.
As per reports, the Indian Railways had shortlisted 13 top companies, which includes IRCTC, GMR, L&T Infrastructure Development Projects, Bharat Heavy Electricals and Welspun Enterprises for operating private trains in 12 clusters that includes 151 trains.
Bids Received By Indian Railways
Recently, we reported to you that bids for three clusters – Mumbai 2, Delhi 1, and Delhi 2 – have been received by the railways. The Railways private player project is being bid on by the Indian Railway Catering and Tourism Corporation (IRCTC) and Megha Engineering & Infrastructures (MEIL).
These three clusters would require roughly 30 pairs of the train and a total investment of Rs 7200 crores.
According to the systematic operation,30 pairs of private train services (60 trains) will be started in three clusters The private investment of Rs 30,000 crore will be done for running passenger trains.
Recently, we reported that all the busy routes in India will now be connected through the Vande Bharat Express by 2024 – and the Indian Railways has already begun the preparations. To honor the 75th year of Independence in 2022, Railway Minister Ashwini Vaishnaw has finalized plans to roll out about 10 new Vande Bharat trains by August next year, which will connect at least 40 cities.