Railway Ministry Invites RFQ For Private Participation In Operating 151 Trains; Project Seeks Private Investment

Ministry of Railways has said that the project would entail private sector investment of about Rs 30,000 crore. This is the first initiative of private investment for running passenger trains over Indian Railways network.

(File Photo/ Getty)

New Delhi: Indian Railways Ministry on Wednesday invited Request for Qualifications (RFQ) for private participation for operation of passenger train services over 109 Origin Destination(OD) pairs of routes through introduction of 151 modern Trains. As claimed by the ministry in an official statement, these 151 trains will be operated by Private operators once the selection  process is over. Unveiling the details of the mega project, the ministry said that the 109 OD Pairs have been formed into 12 clusters across the Indian Railway network. Each Train shall have a minimum of 16 coaches. These trains are going to run on the routes where the demand for trains are already higher than the existing capacity. The driver and guard of the trains will Railway officials . The safety clearance of trains will be done by Railways only . As per the official statement from the ministry issued today, the project would entail private sector investment of about Rs 30,000 crore. This is the first initiative of private investment for running passenger trains over Indian Railways network. Railways said that majority of trains designed for a maximum speed of 160 kmph, will be manufactured in India where private entity shall be responsible for financing, procuring, operation and maintenance of the trains. The Ministry in its statement clarified that the objective of this initiative is to introduce modern technology rolling stock with reduced maintenance, reduced transit time, boost job creation, provide enhanced safety, provide world class travel experience to passengers, and also reduce demand supply deficit in the passenger transportation sector. The Private Entity shall pay to Indian Railways fixed haulage charges, energy charges as per actual consumption and a share in Gross Revenue determined through a transparent bidding process. The operation of the trains by the private entity shall conform to the key performance indicators like punctuality, reliability, upkeep of trains etc. Ministry of Railways said that it recognizes the importance of introducing  next generation technology and provision of higher service quality, ensuring use of improved coach technology and reduced journey time. This is why RFQ has been already invited to permit private entities to undertake passenger trains operations. The private entities for undertaking the project would be selected through a two-stage competitive bidding process comprising of Request for Qualification (RFQ) and Request for Proposal (RFP). RFQ process will be for pre-qualification and shortlisting of the bidders will be based on their financial capacity, who will be required to offer share in the Gross Revenue at RFP stage (bid parameter) for undertaking the project.