PPP – Bids for Public Private Partnership (PPP) in Passenger Train Operation Project
Bids for Public Private Partnership (PPP) in Passenger Train Operation Project
Recently, bids have been invited for Public Private Partnership (PPP) in passenger train operation project.
Key point
- The Ministry of Railways has received bids for operation of 29 pairs of trains from both private and public sectors. In which there are about 40 modern racks. About Rs7,200 crore will be invested in these.
- Earlier, Railways had invited bids for private participation for induction of 151 trains (rakes) in 12 clusters through PPP mode.
- These trains will be run on those routes where the demand for trains is more than the already existing capacity.
- Private sector investment of about Rs30,000 crore is expected from this project.
The private entity shall be responsible for the following:
- Financing, procurement, operation and maintenance of trains.
- Payment of fixed transportation charges, energy charges etc. of Indian Railways.
- Guards and engineers will be deployed by the government, who will operate these trains, maintain the track infrastructure, etc.
Need for Public Private Partnership (PPP) in Railways:
- Introducing modern rolling stock (Railway Vehicles) with low maintenance and short transit time and promoting employment generation.
- To provide safety and world class travel experience to the passengers.
- To reduce the demand supply deficit in the passenger transport sector.
PPP model in railway
- It may be noted that the first PPP model railway line in the country was constructed between Gandhidham and Tuna-Tekara port in Gujarat with the financial assistance of Kandla Port Trust and Western Railway Zone.
- The first major change in the Indian Railways was to run private trains. Under this, the first private train Tejas Express was run between Ahmedabad and Mumbai in November. The Central Government has leased this train to IRCTC.
Source: The Hindu
[catlist]
