NEW DELHI: The railways have for the first time invited bids from private entities to run 150 pairs of passenger trains through the public-private partnership (PPP) mode. Significantly, private entities shall have the liberty to decide passenger fares on these trains that can run at a maximum speed of 160 kmph.
The arrangement is expected to fetch the railways around Rs 30,000 crore in revenue from the private sector.
“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,” said a well-placed source.
These trains will be part of 12 clusters across the railway network. Each of these trains shall have a minimum length of 384 m, which is equivalent to 16 coaches. “The private party shall be liable for financing, procuring, operation and maintenance of the trains.
They can procure trains either through ownership or leasing models,” sources said. The railways shall provide fixed infrastructures like access to rakes, stations, train control systems, watering and cleaning lines. But the private parties will have to pay fixed haulage charges, energy charges and a share in the gross revenue to the railways. Private players will be selected through a two-stage process — request for qualification and request for proposal.
To prod Rlys to get its act together
The project has been structured to give a balanced focus on safeguarding the interests of both the railways and the private players, sources said. Running private trains will prod railways into improving their services