Private Trains Allowed To Fix Fares! 150-Private Trains Will Bring Rs 30,000 Revenues For Indian Railways

In order to run 150 pairs of passenger trains through the public-private partnership (PPP) mode, Railways, has for the first time ever, invited bids from private entities.

The passenger fares on these trains, which can run at a maximum speed of 160 kmph, shall be at the discretion of private entities. 

This would rake in a revenue of around Rs 30,000 crore from the private sector.

150 Pairs of Passenger Trains

A little bird said “The Ministry of Railways has initially identified 150 pairs of passenger train services with new rakes that can be run through private participation. The numbers could be scaled up depending upon its success”.

Across the railway network, these trains will be part of 12 clusters and each of them shall have a minimum length of 384 m, which is equivalent to 16 coaches.

All things including the financing, procuring, operation and maintenance of the trains shall be taken care of by the private party.

As per the sources, these private entities can either buy or lease models. 

Fixed Infrastructure To be Provided by Railways to Players

Fixed infrastructures like access to rakes, stations, train control systems, watering and cleaning lines shall be provided by Railways. Fixed haulage charges, energy charges and a share in the gross revenue will have to be paid by these private parties to the railways. It will be through a two-stage process  — request for qualification and request for proposal – that these private players will be selected. 

According to the sources, the project has been structured to give a balanced focus on safeguarding the interests of both the railways and the private players. Running private trains will prod railways into improving their services