Railways Scraps Tender To Run Private Trains, Will Issue Fresh Tender To Attract More Private Players

by India Infrahub - Aug 19, 2021 12:37 PM +05:30 IST
Railways Scraps Tender To Run Private Trains, Will Issue Fresh Tender To Attract More Private PlayersA Representative Image

Owing to the lukewarm response from private players, the Ministry of Railways has decided to hold the tender for running private trains and re-evaluate the process.

The Railways has identified 109 busy routes to run 151 private trains for 35 years with an estimated investment of Rs 30,000 crore. The 151 trains represent only around 5 per cent of total trains run in India.

“The tender for the private trains has been called off and the entire process will be revalued due to lower participation from private firms. Railways will issue a fresh tender for the same,” a senior ministry official told Hindustan Times.

The business model is being reworked now to attract a large number of players.

Reduction of the lease period, revising revenue sharing and haulage charges, relaxation in the procurement of rolling stock, and fare revision schedule are some areas under consideration for revision.

The Railways has maintained that existing passenger train services shall not be affected by the operation of train services through PPP mode, and these will be in addition to the existing train services.

The private train project aims to offer services better than existing Rajdhani/Shatabdi types of trains. The objective includes improved passenger comfort, efficient air conditioning with automatic temperature and humidity control, superior interiors and toilets, friendly access to differently-abled (divyangjan) passengers, a GPS-enabled passenger announcement system for onboard announcements for station arrivals, and safety announcements.

The routes are divided into 12 clusters based on major city centres, such as Patna, Secunderabad, Bengaluru, Jaipur, Prayagraj, Howrah, Chennai, Chandigarh, and two each for Delhi and Mumbai.

The Railways has also set certain key performance indicators for the private player, like punctuality, reliability, and maintenance of trains. In this, punctuality is the most significant parameter, carrying around 95 per cent weightage.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.

Latest Articles

    Artboard 4Created with Sketch.