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Railways to bring in private operators to up revenues
The railways has decided to hand over two rakes to the IRCTC to operate. It will open more rakes to private operators over the next few years through an open bidding process.
Indian railways will offer trains to be operated by private players to increase its revenue, railway board chairman Vinod Kumar Yadav said on Monday. It has also given approval to its subsidiary, Indian Railway Catering, and Tourism Corporation (IRCTC), for running the Tejas Express between Delhi- Lucknow and Ahmedabad-Mumbai on a pilot basis. The trains would operate with a minimum of 12 coaches for one year.
The plan was part of the ministry’s 100 days action plan approved in June. The railways has decided to hand over two rakes to the IRCTC to operate. It will open more rakes to private operators over the next few years through an open bidding process.
“ This is the vision for the next few years. Private train operators will be introduced and we will provide them with the rolling stock [trains] and the locomotive drivers while the staff and operations will be handled by them, just as how private airlines operate,” Yadav said.
Yadav added that a revamped regulatory authority will also be set up to monitor the fares and safety of the trains. Plans to set up a Railway Development Authority (RDA) have been pending since it was approved by the Union cabinet in 2017. The RDA is aimed at regulating tariff determination, ensuring fair play and level playing field for stakeholders’ investment, setting efficiency and performance standards, suggesting measures to enhance non-fare revenues and dissemination of information.
IRCTC would have to pay applicable charges to the railways for the full trains. The trains would be uniquely numbered and operated according to the time-table by the railways’ operating staff. According to the ministry, the fare structure will be decided by IRCTC, which will be given “full flexibility to decide fares.” No concessions or railway privileges or duty passes will be allowed on these trains, according to the ministry.
Indian railways also plans to set up dedicated passengers trains’ corridor equipped to run trains at 160 KMPH.
“ We are also working on the speed enhancement of the Delhi-Mumbai and Delhi-Howrah corridor to 160 kmph in the next four years. The Eastern and Western Dedicated Freight Corridor will be completed by 2021 which will have the speed of 100 kmph. Once these dedicated freight and passenger corridors are operational, we can introduce more trains to private players on open bidding bases,” Yadav said.
