Private participation in Railways

Private participation in Railways

Part of: GS Prelims and Mains II and III – Govt schemes and policies; Economy, Privatisation and Infrastructure

In news:

• Railways kick-started the process to allow private players to operate certain trains.
• The Ministry of Railways said this is the first initiative for private investment in running passenger trains over the Railways network, and will attract investments of about Rs. 30,000 crore.
• It added that the objective of the initiative was to –
  • introduce modern technology
  • reduce transit time
  • reduced maintenance
  • boost job creation
  • provide enhanced safety
  • provide world class travel experience
  • reduce demand supply deficit in the passenger transportation sector

Do you know?

• The Delhi-Lucknow Tejas is the first train that is not operated by the Indian Railways.
• Earlier, Indian Railway Catering and Tourism Corporation (IRCTC), which is a public sector undertaking, was entrusted with running the train. 

Additional information:

• The Railways said “majority” of trains will be manufactured in India.
• Private entity will be responsible for financing, procuring, operation and maintenance of the trains.
• Trains will be designed for a maximum speed of 160 kmph.