Lawstreet Journal

Railway Ministry Plans To Invite Private Players In Market; 500 Trains, 750 Stations, To Be Run By Private Companies By 2025

Lawstreet Journal 14 Feb 2020 3:32am

Image courtesy: Lawstreet Journal Executive Railway Ministry Plans To Invite Private Players In Market; 500 Trains, 750 Stations, To Be Run By Private Companies By 2025

In its bid to open up rail for private investment, the Railway Ministry has prepared an ambitious plan to allow private operators to operate 500 passenger trains, manage 750 stations and even manage private players ' rolling stock. 

This will be accompanied by 350 additional trains, which will also be operated by private operators, the official said, requesting anonymity. It has been included in the National Infrastructure Project, which has been funded for the next five years. 

Indian Railways operates approximately 13,000 passenger trains every day and expects an additional requirement of 3,000-4,000 trains to meet increasing passenger demand. Private companies will offer travelers world-class equipment and infrastructure, along with increased punctuality. With railway facilities, maintenance and protection, these private train operators will be allowed to purchase, operate and maintain trains, provide passengers with better on-board experience and services, including food, comfort, entertainment.

On 5 February, 2020, the Ministry announced that the draft application for qualifications and the draft concession agreement had been submitted to the Niti-Ayog and Indian Railways websites for input from stakeholders. The Ministry of Railways has designed the rehabilitation of railway stations through the Indian Railway Stations Development Corporation Limited (IRSDC), the Rail Land Development Authority (RLDA) and other central government agencies, by streamlined procedures and longer lease terms.

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.

“We have not decided if the… Continue Reading...


Tagged: Indian Railway   Government Railway  
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