Day after inviting private players, Railways says only 5% trains being offered under PPP

A day after inviting Request for Qualifications (RFQ), the Ministry of Railways clarified that private operators will operate only 5% trains under Public Private Partnership while rest 95% will be operated by the Indian Railways. 

Ministry of Railways on Wednesday invited RFQ for private participation for the operation of passenger train services over 109 Origin-Destination (OD) pairs of routes through the introduction of 151 modern trains.

Speaking to reporters on Thursday during a virtual press conference, Railway Board Chairman Vinod Kumar Yadav said, "5% is being offered to private operators under Public-Private Partnership (PPP), 95% trains will be run by Indian Railways. Majority of trains will be manufactured in India. Private train operators will fix fare keeping in mind fares of airlines and AC buses." 

"Our target is that the private trains start running by April 2023. A mechanism will be set up to monitor the performance of the private trains," he added.

Earlier on Wednesday, the Railways had said that the 109 OD Pairs have been formed into 12 clusters across the network. Each Train shall have a minimum of 16 coaches.

The project would entail private sector investment of about Rs 30,000 crore, it said, adding that this is the first initiative of private investment for running passenger Trains over Indian Railways network.

"Majority of trains to be manufactured in India (Make in India). The private entity shall be responsible for financing, procuring, operation and maintenance of the trains," it said.

Trains shall be designed for a maximum speed of 160 kmph, it further said. 

"There would be a substantial reduction in journey time. The running time taken by a train shall be comparable to or faster than the fastest train of Indian Railways operating in the respective route," the ministry added.

The objective of this initiative, the Railways said, is to introduce modern technology rolling stock with reduced maintenance, reduced transit time, boost job creation, provide enhanced safety, provide world class travel experience to passengers, and also reduce demand supply deficit in the passenger transportation sector.

The private player will pay to Indian Railways fixed haulage charges, energy charges as per actual consumption and a share in Gross Revenue determined through a transparent bidding process. These trains, however, will be operated by the Driver and Guard of Indian Railways.

The operation of the trains by the private entity shall conform to the key performance indicators like punctuality, reliability, upkeep of trains, it said.