The process of allowing private firms to operate passenger trains on its network through 151 new trains has been initiated by the Indian Railways. In the project, the private sector will invest about Rs 30,000 crore. Therefore, we can say that it is the first initiative of private investment for running Passenger Trains over the Indian Railways network.
About Privatisation and Project
The first step towards privatisation has been taken up by the Ministry of Railways by inviting the Request for Qualification (RFQ) to private sectors for the operation of passenger train services.
For private train operations, at least 151 modern trains or rakes will be introduced and 109 pairs of routes will be planned. As per Indian Railways, each train will have a minimum of 16 coaches. The private sector will invest in the project of about Rs 30,000 crore.
The private trains will be high-speed trains designed for a maximum speed of 160 kmph. Also, there will be a substantial reduction in the time of the journey. It is said that the running time shall be as good as the fastest trains of Indian Railways. As, Rajdhani, Vande Bharat, and Tejas are considered high-speed trains that are run by Indian Railways.
In private trains, the fares will be competitive and while fixing the fare prices modes of transport like airlines, buses have to be kept in mind. The majority of the trains to be manufactured in India. The private entity shall be responsible for financing, procuring, operation, and maintenance of the trains.
What are Broad Gauge, Metre Gauge, and Narrow Gauge in Indian Railway?
Now let us have a look at the benefits of Privatisation of Indian Railways.
According to the government's own estimate, the Indian Railways requires a fund of Rs 50 lakh crore for the next 12 years for its operations. For the privatisation project, the concession period shall be 35 years. To Indian Railways, the Private Entity shall pay fixed haulage charges, energy charges as per actual consumption, and in Gross Revenue a share that will be determined via a transparent bidding process.
The emphasis is on that a majority of trains will be manufactured in India under the Make in India scheme.
Train operations will be controlled by the private entity
As per the Railway Ministries, trains shall be operated by drivers and guards of the Indian Railways. Train operations that shall be confirmed to the key performance by the private entity are punctuality, reliability, upkeep of trains, etc. Indian railways will govern the operation and maintenance of the passenger trains by standards, specifications, and requirements.
Reservation on Privatisation of Railways
The whole process will be completed in two parts: first is the Request for Qualification (RFQ), where via the bidding process the private bidders will qualify. And in the second procedure, the Railways will go for a request for a proposal. And the whole process will take around six months. During the RFQ process, the details of revenue generation and routes will be decided according to the Railway sources.
At last, focussing towards privatisation is to introduce such kind of modern technology with rolling stock so that maintenance will be reduced, transit time will be reduced, may foster job creation, provide enhanced safety, world-class travel experience to passengers, and further to reduce the demand-supply deficit in the passenger transportation sector.
Therefore we can say that to find a balanced solution is the need of the hour. A balanced approach and incorporating the benefits of both private and government enterprises should be taken care of.