The Indian Railways sees the need for a regulator to cap fares, allot routes and ensure strict adherence to safety standards as the state-owned organisation is getting ready for privatisation.

"Private operators will be introduced...While this won't happen immediately, this is the right time to initiate the process (of privatisation)," Vinod Kumar Yadav, chairman of Indian Railway Board, told reporters in a press interaction.

The state-owned firm is working on creating a large number of dedicated passenger and freight corridors over the next 5-10 years and once such a system is put into place, private operators will be introduced, Kumar said.

Giving an example of the Tejas Express on Mumbai-Ahmedabad and Delhi-Lucknow routes, Yadav said that while the Indian Railway Catering and Tourism Corp (IRCTC) will have the right to design the interior, food menu, other services for the passengers of the train, the Indian Railways will provide the locomotive, driver, guard and safety maintenance.

Talking about dedicated corridors, Yadav said that the dedicated passenger corridor on Delhi-Mumbai and Delhi-Howrah will be made to be fit for 160 km/hr but freight will be allowed to contribute up to 10 percent to its traffic.

The public sector unit has also planned to improve the speed potential of its network, of which currently only a little over 15 percent is fit for 130 km per hour.

"There are sections which will be updated to 130 km per hour. For speed up to 160 km per hour change in signalling and fencing across the track will be needed and therefore some capex will be required," Yadav added. Currently, 0.15 percent of Indian Railways network is eligible for 160 km per hour.