IR starts process to let private players operate passenger trains

IR formally kick-started its plans of allowing private entities to operate passenger trains on its network on July 1, 2020. It has invited request for qualification bids for participation on 109 pairs of routes through 151 modern trains. The project, the first of its kind by IR, is expected to generate private investment worth Rs 300 billion. The 109 services will be divided into 12 clusters across the railway network. The private operators will be given a 35-year concession and will have to pay IR fixed haulage charges, consumption-based energy charges, and a share of gross revenue determined through the bidding process. Besides, the operator will also be responsible for financing, procuring, operating and maintaining the coaches, the majority of which must be manufactured under the government’s Make in India initiative. The objective of this initiative is to introduce modern rolling stock with reduced maintenance requirements and lower transit time, while boosting job creation, enhancing safety and providing a world-class travel experience to passengers.