This is the 1st private investment initiative for passenger trains on the rail network (representation)
New Delhi:
The Ministry of Railways held a pre-application conference on the private train project in Delhi on Tuesday, where they received the participation of around 16 potential applicants.
The ministry has solicited 12 qualification requests for private participation in the operation of passenger train services on 109 origin and destination route pairs by introducing 151 modern trains (rakes) that will be added to the existing trains operated on the network.
“This is the first private investment initiative to operate passenger trains on India’s rail network. The project would involve private sector investment of around Rs 30,000 crore,” a statement read. of the Ministry of Railways.
“This initiative aims to improve the availability of transportation services for the people of this country, to introduce modern technology rolling stock and services that would improve the overall travel experience of passengers.” The multiplicity of railway operators will create competition and improve service delivery. This initiative also aims to reduce the deficit of supply and demand in the passenger transport sector, ”added the ministry.
The private entities responsible for undertaking the project will be selected through a two-stage tendering process comprising a Request for Qualification (RFQ) and a Request for Proposals (RFP), the ministry said.
Speaking on the questions on transport costs, to which the ministry replied that the transport costs will be specified “in advance and will be correctly indexed for the whole concession period”, thus providing certainty in the transport costs .
The ministry added that it would “also provide details of passenger traffic handled on the routes being tendered. This will allow bidders to exercise due diligence in the project.”
“The Ministry of Railways clarified that trains operated under the project can be purchased or leased by private entities. The Ministry of Railways has also specified that the risks associated with the operation of trains must be distributed between the parties in an equitable manner. », They added.
The Ministry of Railways will provide written answers to questions from potential candidates by July 31. The second pre-bid conference is scheduled for August 12.
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)
