Govt Not Planning To Privatise Indian Railways, Only Outsourcing Some Services: Piyush Goyal

Responding to a series of queries during Question Hour, Union Railway Minister Piyush Goyal said that said such a step has been taken as it is not possible for the government to meet the fund requirement of Rs 50 lakh crore estimated for the next 12 years to operate Railways.

Railway Minister Piyush Goyal inspects the country's fastest T-18 train, scheduled to run between New Delhi and Varanasi railway stations in New Delhi. (File Photo/ Getty)

New Delhi: The Railway Minister on Friday informed that the government is not planning to privatise the Indian Railways and is only outsourcing some commercial and on-board services to private companies in order to provide better services to the commuters. Responding to a series of queries during Question Hour, Union Railway Minister Piyush Goyal said that said such a step has been taken as it is not possible for the government to meet the fund requirement of Rs 50 lakh crore estimated for the next 12 years to operate Railways. "Our intention is to give better services and benefits and not to privatise the Indian Railways. The Indian Railways is and always continues to be the property of India and people of India," Goyal assured in the Upper House. "Every day, members come with a new demand for lines and better services. It is not going to be a possibility for the Government of India to provide Rs 50 lakh crore for the next 12 years. We all know that," the minister said further adding that there are budgetary constraints and other real issues. Noting that thousands of new trains and more investment are required for providing new facilities/rakes and meet the passengers rush, Goyal said: "If there are private players willing to invest and come and run on the existing system, which continues to be always owned by the Indian Railways the consumers and passengers will benefit." "We are outsourcing only the commercial and on- board services to private players. Ownership will be with railways. We are giving only licenses. They are bringing in new rates," Minister of Railways Suresh Angadi said explaining that government is corporatising and not privatising Indian Railways. Angadi also said that existing employees of the Indian Railways will not be affected. Private players will provide better services and create additional employment opportunities. Speaking about the services given to disabled passengers and women at railway stations, Angadi said safety and cleanliness have always been the priority of the government and it would take care if they are lapses in some stations. According to a recent order of the Niti Ayog, the government is in the process of forming a task force to draw a blueprint for handing over operations of 150 trains and 50 railway stations to private operators in a 'time-bound manner'. According to a report by news agency PTI, besides Railway Board Chairman K Yadav and Niti Ayog CEO Amitabh Kant, Department of Economic Affairs Secretary and Ministry of Housing and Urban Affairs Secretary will be part of the empowered group. The Tejas Express on Lucknow-Delhi route, which was flagged off on October 4, is the railways’ first experience of running a train by non-railway operator, its own subsidiary, IRCTC. IRCTC has a slew of benefits worked out for its passengers - combination meals, free insurance of up to Rs 25 lakh and compensation in case of delays. As part of the allowing private operators to run trains, Railways already allowed Lucknow-Delhi and Mumbai-Ahmedabad to IRCTC to run Tejas Express. The railways also planning to allow the private operator to run 150 trains in different routes. (With inputs from PTI)