Indian Railways invites private investment for 151 modern passenger trains. Therefore, the Government of India’s Ministry of railways took a first step in dispossessing its monopoly in the Railways. The ministry has invited Requests for Qualification (RfQ) from private companies to introduce 151 modern passenger trains. The proposals are invited for a Public-Private-Partnership (PPP) for these trains to be run on 109 routes.
As a new initiative in the railways sector. This project would entail an investment of Rs. 30,000 crore. Stated the ministry of railways in statement. However “The objective of this initiative is to introduce modern technology rolling stock with reduced maintenance. And reduced transit time, boost job creation, provide enhanced safety, provide world class travel experience to passengers”. It further added.
Indian Railways For Privatization
Therefore, the 109 origin destination routes have been formed into 12 clusters. Furthermore this is by the Ministry. Which would be covered by these trains. Also, these 12 clusters include Mumbai-1, Mumbai-2, Delhi-1, Delhi-2, Chandigarh, Howrah, Patna, Prayagraj, Secunderabad, Jaipur, Chennai and Bengaluru.
The minimum number of coaches in these trains would be 16. And the maximum would be capped at the number of coaches in the longest passenger train on that route. Since, the speed limit of these trains have been set at 160 kmph.
The ministry also said that “these trains will be operated by the driver and guard of the Indian railways”. It further stated that the standards, specifications and requirements. The operations and maintenance would be spearheaded by the ministry itself.
The concession period for this project shall be 35 years and the private investors will pay to the railways. Fixed haulage charges, energy charges on the basis of consumption. And a share of gross revenue determined through a transparent bidding process.
The proposals can be submitted on or before 8th September, 2020 on with a payment of Rs. 2,36,000 towards cost of tender documents. The move has been taken by the government amidst a sharp focus towards ‘Make in India’. And to encourage private players in India to invest in-house. Hence, Indian Railways invites more privatization with the changing future.