Days after the Centre proposed introducing private passenger train operators, the Indian Railways is studying the possibility of procuring 257 air-conditioned local trains that could be wet-leased for the Mumbai region.
Days after the Centre proposed introducing private passenger train operators, the Indian Railways is studying the possibility of procuring 257 air-conditioned local trains that could be wet-leased for the Mumbai region.
The nudge to explore the possibility of getting AC locals through private parties came from Niti Aayog, the policy think tank of the government, said senior railway officials. This is the first time the national transporter is focusing on wet lease for locals.
Primarily an aviation concept, a wet lease is a contract whereby one airline provides an aircraft, complete crew, maintenance, and insurance to another carrier. This saves the latter from huge financial burdens. In this case, a private company will manufacture the trains and maintain them, while the railways will operate them.
With a daily load of 70 lakh commuters, Mumbai's suburban network is the most extensive in the country. If successful, the wet-lease model would be a blueprint for other cities to replicate, said sources.
"We are studying the scope and modalities to procure trains under the wet-lease model. There are a lot of things that need to be looked into and as of now nothing has been finalised," said a senior railway official.
As far as manufacturing goes, officials said, the railways will save huge amounts of money. Currently, the Integrated Coach Factory, Chennai, produces locals for Mumbai. Under the Phase 3A of the Mumbai Urban Transport Project, the railways has plans to procure 257 rakes. However, this could set it back by nearly Rs 20,865 crore.
Another senior railway official said the Indian Railway Finance Corporation can fund procurement of these rakes on wet lease. In that case, the Indian Railways won't need to spend the money from its coffers and worry about the maintenance of these trains.
"The biggest issue will be that these trains on wet lease should not compromise the safety of passengers using them," said a railway official.
The government, as per its 100-day plan, has already proposed to offer two long-distance trains to its catering and tourism arm IRCTC on haulage concept, with ticketing and onboard services to be provided by them. The trains will operate on important routes like Golden Quadrilateral and Diagonals connecting major cities. The railways will receive a lump sum amount.
Mumbai civic body's bus operator BEST, which is struggling with mounting losses, has planned to use the wet-lease model to procure nearly 530 buses, including 100 AC vehicles.
New Approach
- The Indian Railways plans to procure 257 air-conditioned local trains under Phase 3A of Mumbai Urban Transport Project
- The rakes will set it back by nearly Rs 20,865 crore. Railways can save the money by adopting the wet-lease model as suggested by Niti Aayog
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