Categories: Business

Global transport big names have shown interest in running private trains in India, Hyundai and Hitachi are also involved

Photo: GOOGLE

Big names of global transport evince interest in running private trains

new Delhi. Global infrastructure companies such as Hyundai, Hitachi, Mitsui, Bombardier, Alstom, Macquarie and Siemens are among the list of companies that have shown interest in running private trains in India. Under the policy prepared by the Indian Railways, all these companies have submitted letters of interest.

Companies that have shown interest in running private trains include Hitachi India, Mitsui & Co of Japan and Globan names such as Hyundai Rotem, Bombardier Transportation, Alstom Transport, Siemens, Macquire, CAF India, CRRC ZELC, Getex etc. On the other hand Indian companies include Tata Realty, Adani Ports, Bharat Forge, KEC International, Essel Group and PSUs like IRCTC and BEML. A Group of Secretaries was formed in October 2019 for the project of running private trains in India and this decision was taken after detailed discussion with various participants.

In-principle approval has been received for PPPAC and 12 RFQs have been issued on 1 July. One RFQ has been issued for each cluster. RFQ applicants will be selected for the financial bid, it will take 6-8 months.

Indian Railways has said that out of the currently running 2800 Mail / Express trains, only 5 percent of trains will be given to private companies to run. The winning company will be awarded a contract for 35 years and will have to pay fixed fees for using the rail track, station, railway infrastructure and pay for the electricity consumed.

Companies will have to share the revenue with the Indian Railways through competitive bidding. The private company has to follow 95 percent of the time and ensure a high level of cleanliness. The train coaches will be made in India and the trains will be operated by the drivers and guards of the railway.

The Railways has invited Request for Qualification (RFQ) from private participants to operate 109 pairs of passenger trains through 151 modern trains. The private train is expected to commence from April 2023. Railways has said that the fare of private train will be competitive and while fixing the fare, the fare of airlines and buses on that route will also be taken into consideration.

Private trains will run in 12 clusters, including Bangalore, Chandigarh, Jaipur, Delhi, Mumbai, Patna, Prayagraj, Secunderabad, Howrah and Chennai. Financial bids for private trains are expected to be called by February or March 2021 and finalized by April 2021. The Request for Quotation (ROQ) bids are expected to be completed by September this year.

This post was published on July 8, 2020 2:47 pm

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