Government panel suggests private companies should run passenger trains

A government panel, headed by NITI Aayog member and noted economist Bibek Debroy, has recommended private companies to run passenger trains in India, an English daily reports.

The government panel set up by the Modi government has reportedly prepared a detailed report with recommendations and it will be presented to the government on Friday.

According to the report, the panel has also suggested the scrapping of separate railway budget. The panel reportedly suggested the entry of private companies in operations and maintenance.

It must be remembered that in December 2014, Prime Minister Narendra Modi had ruled out any kind of privatisation of Indian Railways.

"There is a misunderstanding that Railways is being privatised. However, I want to make it clear that we are not privatising Railways. We cannot go in this direction. You don't have to worry. It is neither our wish nor thinking," he had said then. 

If the recommendations by the panel are implemented it would mean switching over to commercial accounting of railway functions, corporatization of railways production units and involving private sector in manufacturing coaches, wagons and locomotives.