Indian Railways now open doors for privatisation of 151 trains in 109 routes

July 2: Indian Railways, the largest employer in the world is all prepared to allow private entities to operate passenger trains on its network by inviting request for qualifications (RFQ) for participation on 109 pairs of routes through 151 modern trains. The project, intended to break the Railways’ longstanding monopoly in running rail services, would entail a private sector investment of around Rs 30,000 crore.

The Indian Railways has said, “The objective of this initiative is to introduce modern technology rolling stock with reduced maintenance, reduced transit time, boost job creation, provide enhanced safety, provide world-class travel experience to passengers.” The move began last year with the introduction of Lucknow-Delhi Tejas Express by the Indian Railway Catering and Tourism Corporation (IRCTC).

The 109 origin-destination routes have been divided into 12 clusters across the rail network. Each train on these routes shall have a minimum of 16 coaches, it said. The trains will be designed for a maximum speed of 160 kmph and the running time between a pair of origin and destination stations is envisaged to be less than what trains currently take.

The concession period for the project will be 35 years. The private entity will pay fixed haulage charges and energy charges based on actual consumption, besides a share in gross revenue determined through a transparent bidding process to the Railways. The national transporter will be providing drivers and guards to operate these trains for the private players. The operation of the trains shall conform to key performance indicators like punctuality, reliability, and upkeep of trains.

Criticising the decision, Congress leader Adhir Ranjan Chowdhury said that the government is in a “desperate mood” to sell a great chunk of one of India’s largest national assets. Congress leader Rahul Gandhi on Thursday sharpened his attack on the Narendra Modi government over its moves to allow private firms to run passenger trains. He said government was taking away the lifeline of the country from the poor, and the people will give a befitting reply.