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Private train fares to be decided by companies operating them, says Railways
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Private train fares to be decided by companies operating them, says Railways
Jul 6, 2020 10:48 AM

Private trains, which are expected to be introduced by 2023, are set to run with a host of new features, and on-board Wi-Fi facility could be one of them. The private entities will be allowed to decide fares to be charged from passengers, Indian Railways has said in the project information memorandum.

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Notably, Railways has already invited request for qualification for allowing private entities to run trains on 109 pair routes in the country. A total of 12 requests for quotation, or RFQs, have been invited for 12 clusters, which include over 100 pairs of routes.

While the RFQ process will be for pre-qualification and shortlisting, bidders will offer share in gross revenue at the request for proposal (RFP) stage.

Gross revenue will include amount from preferred seat options, baggage/luggage, cargo/parcel (if not included in the ticket fare), amount from on-board services such as catering, bed roll, content on demand, Wi-Fi (if not included in the ticket fare) and any amount accruing to the concessionaire on account of advertising, branding and naming rights pursuant to the concession agreement.

The calculation of revenue shall exclude station user fee collected from the users, and all statutory applicable indirect taxes and levies which the concessionaire is bound to pay, Railways said.

Railways will only be responsible for providing a guard and driver for the train; operation, maintenance, financing and procurement will be done by the private train operator. The private train shall have minimum 16 coaches and will use Indian Railways passenger reservation system as booking platform.

For maintenance, Railways will provide berth/space to private entity in the existing maintenance depots or space in approximate area on as is where is basis for upgradation or setting up its maintenance depot and use of the same by the concessionaire for maintaining its trains.

“The concessionaire will bring its manpower, tools and plants as required for undertaking the maintenance obligations. The scheduled maintenance of the trains shall not be before 31 days or a travel of 40,000 kms of such previous scheduled maintenance,” the information memorandum added.

In line with the union government’s Make in India initiative, the concession agreement will include provisions regarding mandatory sourcing via domestic production in India over a period of time. Simultaneously, the private entity will be allowed to procure trains and locomotives from a source of their choice.

The maximum speed for a private train has been set at 140 km per hour. The running time taken by a train from originating station to destination station shall be comparable to the fastest train of Railways operating between same routes with a variation of plus or minus 10 percent.

“No new similar scheduled train will depart the originating station in the same origin destination route within 60 minutes of the scheduled departure of the concessionaires train. However, this restriction shall not apply in case capacity utilisation of the concessionaire train is more than 80 percent in the previous three months,” Railways added.

Also read: Cabinet may decide on second phase of airport privatisation in July

First Published:Jul 6, 2020 7:48 PM IST

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