Private participation in Railways
Part of: GS Prelims and Mains II and III – Govt schemes and policies; Economy, Privatisation and Infrastructure
- 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.
- 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.