Indian Railways likely to invite private companies to run trains on some routes

Modi government is planning to invite private firms to run passenger trains on low congestion and tourist routes. Railways Board document shows that it will invite bids in the next 100 days, reported TOI.

Railways will experiment in the beginning by offering two trains to IRCTC, to run. Ticketing and on board services will be provided by IRCTC and the railways will receive handsome amount in return.

These trains likely to be operated on routes which have low traffic and connect tourist spots.

Custody of rakes will be transferred to IRCTC, which will pay annual lease charges to IRFC.

Consequently, Indian railways will float the expression of interests, “to identify operators willing to participate in the bidding process for rights to run passenger day/overnight train sets connecting important cities," a letter sent by railway board chairman VK Yadav to all members and top officials of railways said.

Letter also mentioned that the Indian railways will consult trade unions while finalising the contours of inviting private partners to run passenger trains.

Indian railways will also launch a massive campaign appealing people to give up the subsidy while booking or purchasing a rail ticket. Passengers will have the option to purchase ticket with or without subsidy.

According to the Railways, it recovers only 53% of the cost incurred from passenger transport business.