InvestorQ : What is the status of private players running trains on behalf of the Indian Railways?
Mary Joseph made post

What is the status of private players running trains on behalf of the Indian Railways?

Answer
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sara Kunju answered.
3 months ago


Private participants will commence rail passenger services by April 2023. However, they will only be allowed to run only 5% of the total mail and express train services of the Indian Railways. The ticket fares in these private trains will be competitive with airfares on similar routes. This will ensure better technology and coaches that run at higher speeds.

Railways formally opened up the process to allow private participation in passenger trains by inviting RFQ for participation on 109 pairs of routes through 151 modern trains. To allay fears of unions and employees, the Railways has assured that private participation in passenger trains will be limited to 5% of the existing 2,800 mail and express trains.

The superior technology will reduce maintenance costs as the coaches will now need maintenance only after every 40,000-km. Private trains would mean trains will be available on demand and the waitlist will reduce. In FY20, the total railway demand was for 840 crore sectors and nearly 5 crore tickets could not be allotted seats.

The private trains are expected to operate in 12 clusters which include Bengaluru, Chandigarh, Jaipur, Delhi, Mumbai, Patna, Prayagraj, Secunderabad, Howrah and Chennai. The total private investment will be Rs.30,000 crore but it remains to be seen if such a premium service within the railways can really be sustained profitably.