Categories: Business

private train operators to share gross revenue with railways

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Private Train

new Delhi. After running private trains, passengers may have to pay for preferred seats, luggage and services during the journey, like the airline. This will be the share of gross revenue that the private company concerned will have to share with the Railways. This information has been obtained from the documents issued by the Railways. Railways has recently issued a request proposal (RFQ) inviting private units to run passenger trains on the rail network. According to officials, private units have to decide on the amount to be collected from the passengers for these services.

The document states that bidders will have to offer a share in the gross revenue in the request proposal to take up the project according to their financial capacity. According to the request proposal, the Railways will give freedom to private units to collect fare from passengers. Also, they can explore new options to generate revenue. The RFQ states, "The definition of gross revenue is still under consideration. Well this may include the following things. The amount received by the company concerned in lieu of service to the passengers by passengers or any third party will come under it. This will include the fare on the ticket, choice of preferred seat, fee for baggage / parcel / cargo (if not included in the ticket fare). Bed sheets, any material provided on demand, Wi-Fi (if not included in ticket fare). Apart from this, the amount received from things like advertising, branding will also be a part of the gross revenue. "

The chairman of the Railway Board, in a press conference, dismissed the possibility of ticket fare becoming expensive and said that it would be based on market and competitive price. It is noteworthy that for the first time the Railways has invited proposals from private companies for running 151 modern passenger trains on 109 routes across the country. An investment of around Rs 30,000 crore from the private sector is estimated in this project. The private company will be free to buy engines and trains from anywhere provided they meet the conditions and standards set under the agreement. However, the agreement will have a provision to buy through domestic production for a fixed period.

This post was published on July 7, 2020 1:19 am

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