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News Entry# 461010
Aug 03 (21:14) IRCTC Begins Talks For Partnership With BHEL to Run Private Trains Soon: Report (
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News Entry# 461010  Blog Entry# 5032222   
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New Delhi: The Indian Railway Catering and Tourism Corporation (IRCTC) and Bharat Heavy Electricals (BHEL) and in talks for the partnership to run private trains through a special purpose vehicle (SPV) that the two public sector undertakings (PSUs) are planning to form, reports suggested on Tuesday.

As per the reports, the IRCTC will put in bids for routes and the companies will run passenger trains on these routes through the SPV.

As per the reports, the bids for a public-private partnership (PPPs) in passenger train operations were opened last month and according to a statement from the government, bids have come in for 29 pairs of trains with around 40 modern rakes, entailing an investment of around Rs 7,200 crore.

The report also suggested that many top companies including L&T, GMR and Welspun were in the race to participate in the Request for Proposal (RFP) stage to operate private passenger train services in November last year.

The Ministry of Railways, however, said that out of 120 applications from 16 firms at the Request for Qualification (RFQ) stage, 102 applications were found eligible for the RFP stage. The Indian Railways had invited the bids from private firms to operate passenger train services in over 12 clusters comprising more than 150 origin-destination pair of routes through the introduction of 151 modern Trains.

Experts in the matter believe that the private train project is likely to boost the Indian Railways' revenues and private investment should be encouraged for more efficient functioning. It must be mentioned that the Centre had increased investment in railways to Rs 2.15 lakh crore in 2021-22 fiscal, from Rs 1.5 lakh crore in 2019-20 fiscal.
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