NITI Aayog pitches private participation for operating passenger trains

In consultation with NITI Aayog, the MoR has picked 100 routes to run 150 private passenger trains. The tenders for the routes are likely to be invited soon. NITI Aayog has released draft guidelines for discussion purposes with various stakeholders. The government think tank has envisaged an investment of Rs 225 billion for the project. An in-principle approval has been received from the Ministry of Finance’s PPPAC for implementation of the project. In October 2019, the Railway Board had also formed an empowered group of secretaries to chalk out the modalities of the bidding process and take other decisions to fast-track awarding of bids to private players. According to the plan, domestic as well as global players, with experience in railway and tourism sectors, will be allowed to bid for the routes on a the revenue-sharing basis. The private operator will have the right to collect market-linked fares and will be provided flexibility to decide class composition and halts.