Private money soon to flow into Railways – A crisp overview
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Ministry of Railways has taken the decision towards privatisation by inviting Request for Qualifications (RFQ) to private players for operation of passenger train services.
As per the government announcement –
•151 modern trains will be introduced
• Each train will have a minimum of 16 coaches
•109 pairs of routes for private train operations
• Estimated value of private investment 30k cr.
The private entities as per the provisions are obliged to –
~Pay Fixed haulage charges.
~Pay Energy charges.
~Share in gross revenues
As per Railway sources, the details of revenue generation and routes will be decided during the RFQ process.
The concession period for the privatisation project shall be 35 years.
The Indian Railways requires a fund of rs 50 lkh cr. for the next 12 years of its operations.
As per the Ministry of Railway, the aim of the decision is to –
✓Introduce modern technology
✓Reduced transit time
✓Boost job creation
✓Provide enhanced safety
✓Provide world class travel experience
It also emphasised that a majority of trains will be manufactured in India under the Make in India scheme.
The private entity shall be responsible for financing, procuring, operations and maintenance of the trains as well.
