Indian Railways: The Plans and Timeline for Private Trains

Indian Railways: The Plans and Timeline for Private Trains

Indian Railways is gearing up to introduce private trains on its expansive network, marking a significant shift in the country's public transportation system. According to the plans, the first batch of private trains is set to start running from the 2023-24 financial year. Here is a detailed breakdown of the rollout and some insights into the expectations and processes involved.

Initial Rollout and Phased Involvement

As per the Indian Railways' projections, the first 12 private trains are due to start running in the 2023-24 financial year. By 2027, all 151 trains are expected to be operational, marking a phased integration of the private sector into the country's rail network.

In a formal step towards allowing private entities to operate on its network, the railways have initiated the selection process and invited proposals from companies to run 151 modern passenger trains. These trains will operate on 109 pairs of routes across the country, signaling a strategic move towards privatization and modernization.

Details of the Program

The railways have planned to roll out 12 trains in the 2022-23 fiscal year, followed by 45 more in the 2023-24 fiscal year. Between 2024-25 and 2025-26, the next 50 trains will be introduced. The remaining 44 trains are scheduled to run by 2026-27, resulting in a total of 151 private trains being operational by 2027.

Specifics of the Private Train Initiative

Under the scheme, the Indian railways will invite proposals from companies to run private passenger trains. A Request for Qualification (RFQ) has been issued, and the finalization is expected by November 2021. Financial bids will be opened in March 2022, with a selection process by April 30, 2022, aligning with the initial timeline drawn by the railways.

A key aspect of the initiative is the local manufacturing of these trains, with 70 out of the 151 trains set to be manufactured in India, designed for a maximum speed of 160 kmph. The introduction of these faster trains is expected to significantly reduce travel times, with a reduction of 10-15 minutes at 130 kmph and 30 minutes at 160 kmph compared to existing trains.

The private operators will pay fixed haulage charges, energy charges as per actual consumption, and a share of the gross revenue based on a transparent bidding process. The railways expects to receive around 3000 crore per annum from the operation of these 151 trains, highlighting the financial benefits to the public sector.

Operational and Maintenance Standards

The private players engaged in operating these trains will have to conform to specific operational and maintenance standards. These trains will be crewed by Indian drivers and guards, and the maintenance and operation will adhere to the standards and specifications set by the Indian Railways. The private entities will be subject to penalties for failing to meet the performance standards, as detailed in the Concession Agreement and key performance indicators such as punctuality, reliability, and the upkeep of the trains.

As part of the phased introduction, the railways have already initiated the process for the first 12 private trains, with some private trains such as the IRCTC Mahakal Express and IRCTC Tejas Express starting to ply earlier, despite the current restrictions.

With the rollout of the private train services, India seeks to harness the benefits of privatization, increase efficiency, and enhance the passenger experience while simultaneously offering opportunities for private sector investment.

Conclusion

The phased introduction of private trains marks an exciting new chapter for Indian Railways, combining the strengths of public and private sectors to improve transportation services. As the system moves forward, it is anticipated that the introduction of these modern, efficient trains will have a significant impact on the country's transportation infrastructure and economy.