E-Paper
Royal luxury train, Palace on Wheels to operate on O&M model from 2022-23
The royal luxury train, Palace of Wheels, which came to a halt due to Covid-19 in March 2020, is likely to return on track from October, this year
The royal luxury train, Palace of Wheels is all set to run on the operation and maintenance (O&M) model under the ‘Bharat Gaurav Train Policy’ of the Indian Railways from the year 2022-23 while the ownership of the train will remain with the Rajasthan Tourism Development Corporation ( RTDC), officials said.
The train, which came to a halt due to Covid-19 in March 2020, is likely to return on track from October, this year.
The train has been running since 1982 and has never been in losses. The decision to operate the train on the operation and maintenance model has been approved by the cabinet.
A senior official familiar with the development said the famous Palace on Wheels will start its operations soon. “Now the train will be operated on an operation and maintenance model under the ‘Bharat Gaurav Train Policy’ of Indian Railways from the year 2022-23,” he said.
He further added that RTDC will get a fixed revenue every year and the tourists will get more facilities with private participation.
“The railway has given possession of the train to the RTDC and the refurbishing work has been started,” the official said.
He added that in the coming weeks a new agreement will be inked with the Indian railways, and the tender for the operation and maintenance of the train will be released as the proceedings of the cabinet meeting is received.
RTDC has handed over around ₹5 crore, part payment of the dues with the Indian Railways, and rest will be released soon. RTDC has to clear an outstanding of ₹28 crore of Palace on Wheel, which includes principal and interest amount. The railway has already reduced ₹10 crore as one of the trains was withdrawn, said the official.
The train was non-operational for more than two years due to Covid-19. The Railways and RTDC used to get revenue in the ratio of 56:44 in the operation of this train. But the distribution pattern is changed and the haulage charges will have to be paid by RTDC as per the Bharat Gaurav Train Policy.
On an average, the train has at least 60-70% booking. In 2019-20, the train generated a revenue of ₹14.65 crore. It was ₹16.17 crore in 2018-19, ₹14.05 crore in 2017-18) and ₹13.96 crore in 2016-17.
The official said on an average the train generated a profit of ₹3 to ₹5 crore annually, which we expect to increase to ₹7– ₹8 crore annually after giving the O&M to a private firm after tendering.
