India’s first private train on Indian Railways network to hit tracks by this year; details

By: |
Updated: Jul 02, 2020 6:33 PM

Private trains: The aim of this initiative is to introduce modern technology rolling stock with reduced transit time, reduced maintenance, provide enhanced safety to passengers, provide world-class travel experience

First private train: According to the Railway Ministry, the project would entail investment from the private sector of around Rs 30,000 crore.

First private train to be out by April 2023! Today Railway Board Chairman Vinod Kumar Yadav announced that the first private train on Indian Railways network is expected to hit tracks for passengers sometime in the month of April 2023. Yesterday, Request for Qualifications (RFQ) has been invited by Piyush Goyal chaired Railway Ministry for the participation of private players for the operation of passenger train services over 109 Origin Destination pairs of railway routes through the introduction of as many as 151 modern trains. According to Railway Ministry, the 109 OD pairs have been formed into a total of twelve clusters across the country’s railway network. Each of these modern trains will have a minimum of 16 coaches.

According to the Railway Ministry, the project would entail investment from the private sector of around Rs 30,000 crore. Interestingly, this is the first such initiative of investment from the private sector for operating passenger train services over the Indian Railways network. The majority of these modern trains are likely to be manufactured under the Modi government’s Make in India initiative.

For financing, procuring, operation as well as for maintenance of the trains, the private entity will be responsible, the Railway Ministry has stated. The modern private trains will be designed for a maximum speed of 160 km per hour, therefore, there would be a drastic reduction in journey time, according to the ministry.

According to the national transporter, the aim of this initiative is to introduce modern technology rolling stock with reduced transit time, reduced maintenance, provide enhanced safety to passengers, provide world-class travel experience, creation of jobs, as well as to minimize the demand-supply deficit in the sector of passenger transportation. For the project, the concession period will be 35 years. The private firm will have pay to the national transporter energy charges as per actual consumption, fixed haulage charges as well as a share in Gross Revenue, which will be determined through a transparent process of bidding.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1For passengers’ convenience, Indian Railways to reactivate unreserved ticket booking through UTS on mobile app
2Amidst Covid, Indian Railways discourages unnecessary travel with slightly high fare of short-distance trains
3Massive loss due to COVID-19 pandemic! Indian Railways’ western zone suffers Rs 5,000 crore annual loss